Central Banks today all engage in Seignorage to some extent, in that they gain from the issuance of new money, or collect interest on the securities that they hold in doing so. Yet, the Quantity Theory of Money argues that these issuances always come with a depreciation of value for existing currency. This depreciation is not harmless, and indeed creates the greatest hardship for retirees and other savers who have diminished earning capacity. Both the Bible and the U.S. Constitution emphasize the ethical importance of an honest system of weights and measures, and most students of these passages believe this rule was designed to include an honest and dependable value of money. 

In light of these advisories, can we justify the activity of central banks and governments worldwide to inflate money supplies in such a way that value is diminished? Is there an ethical component to inflation? And if authorized such inflationary actions, who should gain the seignorage or benefit from these actions?

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