> If the central bank creates money faster than the amount of goods and services is growing, then all prices will rise, in roughly the same proportion.

A small correction here: most money these days is created by private banks, not by the central bank. Part of the idea here is that it makes the money supply more responsive to demand - when there's lots of demand for borrowing, banks will create more money.

Central banks do have the main responsibility for overseeing this though, and can influence the money supply via interest rates and regulation.