The money supply, now wholly controlled by central banks, could be increased without regard to any underlying commodity. There was, however, one important catch to this newfound freedom of money. It was now created as a form of debt, requiring a promise to be paid back. As such, the money supply had to keep growing to service the interest on the debt, making perpetual economic growth a necessity to keep the entire system running.
Why it requires constant economic growth. finger strokes creating money from nothing.
