Yes! As an example, if you borrow money from a bank to buy a house: - the bank literally creates that money out of thin air to pay for the house. - that is n

Yes! As an example, if you borrow money from a bank to buy a house: - the bank literally creates that money out of thin air to pay for the house. - that is new money, and therefore the total money supply (of your entire currency) is increased. - when you you make a mortgage payment, you are decreasing the total money supply. All modern economies are built of this system. To make things weirder, you need to repay to the bank more money than they lent you. If everybody wanted to repay their mortgages at once, there would not be enough money available to do this, without more money being created. (At least, I think that's how it works -- it's super confusing!)