In cosmology, creating more space (i.e., money) is not wrong. It has a crucial purpose: expanding space and the cosmic ledger to be able to hold more information that has to be tracked or being generated by conscious entities.
It prevents the universe from collapsing into a black hole. Black holes are maximally entangled holographic entities with maximal informational storage and processing capabilities. They anchor galaxies and they are used to reseed the next aeon of the universe when itself becomes stale and boring.
The same logic I think can be applied to increasing money supply. More people - more money needed to incentivize them to do their job, keep civilization going and have the next generation to continue the process.
Fixed monetary systems (gold or simply not printing money) has the drawback that it maximizes the number of people that can meaningfully engage with it. Extras are left out forever. Also it is prone to deflation forces, which practically deletes all incentives and makes the civilization very, very basic in looks, barely above animals.
But indeed, excessive expansion via injecting slop into the system, random noise that can't properly be compacted is an issue.