---
entity_slug: seignorage
evaluator: null
evaluated_at: '2026-02-23T06:20:48.080529'
overall_score: 4.4
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly distinguishes seignorage as the specific difference
    between money's value and production costs, avoiding circularity. It precisely
    captures a distinct economic concept rather than being a vague umbrella term.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: Smith explicitly discusses seignorage in Book I, Chapter 5, examining
    how governments might use it as revenue and how it affects the relative values
    of coin versus bullion. The entity accurately reflects Smith's actual treatment
    of this concept.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: '"Regulation" is the correct domain placement since Smith discusses seignorage
    primarily as a tool for government regulation of currency values and metal circulation.
    This fits perfectly within regulatory economic mechanisms.'
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: Seignorage maps well to S3 (internal regulation) as a mechanism for controlling
    monetary systems, and potentially to S4 (intelligence) regarding environmental
    adaptation of currency policy. It has clear VSM relevance rather than being too
    abstract.
- name: explanatory_value
  value: 4.0
  max_value: 5.0
  rationale: The concept illuminates an important mechanism by which governments can
    influence monetary systems and the relationship between different forms of money.
    It explains structural relations in currency regulation rather than merely naming
    a surface phenomenon.
---

# Evaluation: Seignorage

## definition_precision — 4.0 / 5.0

The definition clearly distinguishes seignorage as the specific difference between money's value and production costs, avoiding circularity. It precisely captures a distinct economic concept rather than being a vague umbrella term.

## source_grounding — 5.0 / 5.0

Smith explicitly discusses seignorage in Book I, Chapter 5, examining how governments might use it as revenue and how it affects the relative values of coin versus bullion. The entity accurately reflects Smith's actual treatment of this concept.

## domain_placement — 5.0 / 5.0

"Regulation" is the correct domain placement since Smith discusses seignorage primarily as a tool for government regulation of currency values and metal circulation. This fits perfectly within regulatory economic mechanisms.

## vsm_relevance — 4.0 / 5.0

Seignorage maps well to S3 (internal regulation) as a mechanism for controlling monetary systems, and potentially to S4 (intelligence) regarding environmental adaptation of currency policy. It has clear VSM relevance rather than being too abstract.

## explanatory_value — 4.0 / 5.0

The concept illuminates an important mechanism by which governments can influence monetary systems and the relationship between different forms of money. It explains structural relations in currency regulation rather than merely naming a surface phenomenon.
