The concept of total gross seigniorage is used to analyse sources and uses
of central bank seigniorage in the Czech Republic during the period 1993-19
97. A comprehensive framework for measuring total seigniorage and its main
components is presented and estimates of seigniorage revenues (sources and
uses) are computed and analysed. The study explains why the concept of mone
tary seigniorage should not be used as an estimate of government gains from
money creation and shows that seigniorage revenues have never been extensi
vely used as a tool for financing expenditures of the Czech government.