31 lines
1.1 KiB
Markdown
31 lines
1.1 KiB
Markdown
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---
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entity_slug: circulation_of_money
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entity_type: Process
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vsm_system: S2
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type_rationale: The circulation of money is described as "continuous movement" and
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an activity that "happens" as money passes from hand to hand, making it fundamentally
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a flow or process rather than a static entity.
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vsm_rationale: The circulation of money serves as the coordination mechanism that
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enables price signals and market transactions to function smoothly across the economy,
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preventing oscillations by ensuring liquidity flows where needed.
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classified_at: '2026-02-23T10:49:55.823548'
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---
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# Classification: Circulation Of Money
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## Entity Type
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Process
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## VSM System
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S2
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## Type Rationale
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The circulation of money is described as "continuous movement" and an activity that "happens" as money passes from hand to hand, making it fundamentally a flow or process rather than a static entity.
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## VSM Rationale
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The circulation of money serves as the coordination mechanism that enables price signals and market transactions to function smoothly across the economy, preventing oscillations by ensuring liquidity flows where needed.
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