How does the economy “grow”? Where does the new money comes from?

Question

How does the economy “grow”? Where does the new money comes from?

In: 398

Answer 1

I read all the answers, there’s some good ones. Here’s the simplified one that answers OP’s literal question, where does the actual literal money come from?

*Banks lend money into existence. Governments spend money into existence.*

Paying back the loan and paying (national level) taxes unprints the money.

The real economy, people making and trading stuff, grows as we gain people and gain stuff. But that creates demand for more, new money. That demand is satisfied by the new loans and the government spending.