Unformatted text preview: Monetary policy in modern times can print higher money supply & gov’t can earn profit by doing so. This gov’t profit is called, or “SEIGNEORAGE” (pron. See-nee-orage). o Govt’s that have been too greedy of seigneorage have paid a significant ‘price’ for it. E.g. Germany, Turkey,etc. • Modern money supply is called Credit Money or fiduciary money. Topics on Test 1: Definitions: Economics (micro & macro, normative & positive), factors of production, economic system, communism, capitalism, circular flow, opportunity cost, economic hypothesis, PPC, law of demand & its validity, law of supply. 1 & 2 of both chapter 3 of micro....
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- Fall '08
- Economics, Bad form/good form