You are right. Central banks can only influence the process, but what really decide the creation or "extinction" of money is the demand of credit in commercial

You are right. Central banks can only influence the process, but what really decide the creation or "extinction" of money is the demand of credit in commercial private banks. In a way, the system is self-regulated. In fact, all the "fractional-reserve" thing is a myth. Banks loan when they see the opportunity of profit, and then they search for reserves. Not the other way around.