Originally Posted by
DeirdreTours
Actually, only paper money has to be accounted for in this way. Coinage is an exception and can be put into the money supply with no equivalent take out from the money supply. In short, coinage is newly created money, not replacement money. The sole cost to the government is that of producing and marketing, just like any other manufactured product.
..if you want to ignore dilution (unless the composition is equivalent to the value of the coin). See earlier post using the analogy of issuing new equity shares.