---
entity_slug: money
entity_type: Element
vsm_system: S2
type_rationale: Money is a persistent commodity or artifact that exists as a medium
  of exchange, functioning as a tangible stock that individuals can hold and accumulate
  rather than being a process or abstract principle.
vsm_rationale: Money serves as the primary coordination mechanism that enables price
  signals and market transactions by providing a universal standard for exchange,
  eliminating the oscillations and inefficiencies inherent in barter systems.
classified_at: '2026-02-23T11:16:39.745681'
---

# Classification: Money

## Entity Type

Element

## VSM System

S2

## Type Rationale

Money is a persistent commodity or artifact that exists as a medium of exchange, functioning as a tangible stock that individuals can hold and accumulate rather than being a process or abstract principle.

## VSM Rationale

Money serves as the primary coordination mechanism that enables price signals and market transactions by providing a universal standard for exchange, eliminating the oscillations and inefficiencies inherent in barter systems.
