31 lines
1 KiB
Markdown
31 lines
1 KiB
Markdown
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---
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entity_slug: rate_of_interest
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entity_type: Element
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vsm_system: S2
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type_rationale: The rate of interest is a persistent economic artifact that exists
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as a measurable price in the market, rather than being an activity, relationship,
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or abstract principle.
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vsm_rationale: As a price signal that coordinates the allocation of lendable capital
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between suppliers and demanders, the rate of interest functions as a key coordination
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mechanism that prevents oscillations in capital markets.
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classified_at: '2026-02-23T11:24:29.191656'
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---
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# Classification: Rate Of Interest
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## Entity Type
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Element
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## VSM System
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S2
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## Type Rationale
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The rate of interest is a persistent economic artifact that exists as a measurable price in the market, rather than being an activity, relationship, or abstract principle.
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## VSM Rationale
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As a price signal that coordinates the allocation of lendable capital between suppliers and demanders, the rate of interest functions as a key coordination mechanism that prevents oscillations in capital markets.
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