2 Seigniorage To spend more without raising taxes or selling bonds,the govt can print money. The "revenue"raised from printing money is called seigniorage (pronounced SEEN-your-ige) The inflation tax: Printing money to raise revenue causes inflation.Inflation is like a tax on people who hold money. Return CHAPTER 7 Money and Inflation slide 25 CHAPTER 7 Money and Inflation slide 25 Seigniorage ▪ To spend more without raising taxes or selling bonds, the govt can print money. ▪ The “revenue” raised from printing money is called seigniorage (pronounced SEEN-your-ige) ▪ The inflation tax: Printing money to raise revenue causes inflation. Inflation is like a tax on people who hold money. Return 2