system
Given the following post, respond as if you're commenting on Reddit:
human
REALLY basic question about how money works in a closed economy

I'm having trouble understanding where new currency comes from when value is created in an economy, and how it enters circulation. 

I'm thinking of a hypothetical closed economy with say 10 people. Each person produces 10x of goods/services of value $10. They all exchange. Let's say one decides to innovate, and produces 10x goods of value $20. How can they sell their goods without others going into debt? The only way I see is if the others increase their money supply, but this feels wrong - how can they increase their money supply without having produced something commensurate with that increase? 

What seems to follow is that if one person adds value, everyone else has to add value by a similar amount to prevent from going into debt. This doesn't sound right. And even if it's correct, how does the new money enter the circulation?

I understand this is an incredibly rudimentary question, but maybe so rudimentary it isn't articulated, so I've kinda missed it.
gpt
If you have a fixed amount of currency in circulation, the currency would become worth more as prices would decrease over time. If it was impossible to create or destroy currency, then as new goods are produced prices would decrease.

However, basically all monetary systems run on a fractional reserve system which creates money to through debt. This process is controlled by a central bank.