---
entity_slug: debasement_of_currency
evaluator: null
evaluated_at: '2026-02-23T05:05:01.331634'
overall_score: 4.6
scores:
- name: definition_precision
  value: 5.0
  max_value: 5.0
  rationale: The definition is highly precise and non-circular, clearly distinguishing
    debasement as the deliberate reduction of precious metal content while maintaining
    nominal value. It captures a distinct monetary practice with specific mechanics
    and consequences.
- name: source_grounding
  value: 4.0
  max_value: 5.0
  rationale: Smith does discuss currency debasement and its effects on value and commerce
    in Book I, Chapter 4, particularly in relation to the measure of value and historical
    monetary practices. The characterization as "abuse of trust" and "defrauding creditors"
    aligns with Smith's critical perspective on such practices.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: '"Regulation" is the correct domain placement since debasement represents
    a governmental/sovereign regulatory action that manipulates monetary standards.
    This fits perfectly within the regulatory framework of economic policy and monetary
    control.'
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: This entity maps well to S3 (internal regulation) as it represents a
    regulatory mechanism for managing monetary policy, and potentially S5 (identity/policy)
    as it reflects sovereign decisions about monetary standards. It has clear VSM
    relevance rather than being abstract.
- name: explanatory_value
  value: 5.0
  max_value: 5.0
  rationale: The entity provides excellent explanatory power by illuminating the structural
    mechanism through which governments can manipulate currency value and redistribute
    wealth between debtors and creditors. It reveals a fundamental tension in monetary
    systems between sovereign power and commercial stability.
---

# Evaluation: Debasement Of Currency

## definition_precision — 5.0 / 5.0

The definition is highly precise and non-circular, clearly distinguishing debasement as the deliberate reduction of precious metal content while maintaining nominal value. It captures a distinct monetary practice with specific mechanics and consequences.

## source_grounding — 4.0 / 5.0

Smith does discuss currency debasement and its effects on value and commerce in Book I, Chapter 4, particularly in relation to the measure of value and historical monetary practices. The characterization as "abuse of trust" and "defrauding creditors" aligns with Smith's critical perspective on such practices.

## domain_placement — 5.0 / 5.0

"Regulation" is the correct domain placement since debasement represents a governmental/sovereign regulatory action that manipulates monetary standards. This fits perfectly within the regulatory framework of economic policy and monetary control.

## vsm_relevance — 4.0 / 5.0

This entity maps well to S3 (internal regulation) as it represents a regulatory mechanism for managing monetary policy, and potentially S5 (identity/policy) as it reflects sovereign decisions about monetary standards. It has clear VSM relevance rather than being abstract.

## explanatory_value — 5.0 / 5.0

The entity provides excellent explanatory power by illuminating the structural mechanism through which governments can manipulate currency value and redistribute wealth between debtors and creditors. It reveals a fundamental tension in monetary systems between sovereign power and commercial stability.
