---
entity_slug: market_rate_of_interest
entity_type: Element
vsm_system: S2
type_rationale: The market rate of interest is a measurable economic quantity that
  exists as a prevailing rate in the marketplace, functioning as a persistent stock
  of information rather than a process or relationship.
vsm_rationale: As a price signal that emerges from supply and demand for capital and
  coordinates lending behavior across the economy, the market rate of interest serves
  the classic S2 function of providing coordination through market-generated information.
classified_at: '2026-02-23T11:13:58.486208'
---

# Classification: Market Rate Of Interest

## Entity Type

Element

## VSM System

S2

## Type Rationale

The market rate of interest is a measurable economic quantity that exists as a prevailing rate in the marketplace, functioning as a persistent stock of information rather than a process or relationship.

## VSM Rationale

As a price signal that emerges from supply and demand for capital and coordinates lending behavior across the economy, the market rate of interest serves the classic S2 function of providing coordination through market-generated information.
