It is not quite that simple. Money does eventually get removed from the system when loans are canceled without being fully repaid. When people die with an est

It is not quite that simple. Money does eventually get removed from the system when loans are canceled without being fully repaid. When people die with an estate that is too small to repay their debts that is exactly what happens; it also often happens when businesses go bankrupt, which would likely happen when the population shrinks. Obviously this is a bit oversimplified, but the point is that the money supply is not static thing where money is "printed" by some central authority and then stays in circulation forever.