Manfred J.M. Neumann considers one of the oldest and most interesting issues in monetary economics, "seigniorage”—the revenue associated with the creation of money. The author extends a traditional measure of seigniorage with a new measure, "extended monetary seigniorage,” that he has developed. Neumann’s new measure shows the distribution of seigniorage between the central bank and the Treasury. Neumann calculates extended monetary seigniorage for the United States for the period 1951-90. He estimates that the Treasury's share of seigniorage, which he calls fiscal seigniorage, has amounted to between 1 percent and 2.8 percent of federal spending. He also examines the relationship between inflation and seigniorage and estimates that seigniorage increases with inflation until the inflation rate reaches about 7 percent, then declines with further increases in the inflation rate.