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

This is simple. New money is created from debt in the form of lending. You go to a bank for a $100,000 loan. The bank writes the loan contract, and gives you the money. That “new” money did not exist before the loan.