If the idea of requiring an ever expanding supply of money in order to pay interest on outstanding debt seems logical, keep in mind that economic growth comes from increased goods and services for the welfare of market participants, not the increase of money alone.

The role of money as a medium of indirect exchange allows people to engage in economic transactions with a fixed quantity of money. Money prices adjust to reflect the relative quantities of goods available for exchange. As a matter of fact, with a fixed money supply, money prices become much more reliable as communicators of economic information.

It follows that a fixed money supply also provides more reliable pricing for loan transactions, which in the final analysis amounts to the exchange of economic goods between different points in time, e.g. a current quantity of corn seed in exchange for a greater quantity of similar corn seed some time in the future.