The "money multiplier" myth refuses to die

The myth that banks mechanically expand lending when the central bank increases reserves has been resurrected by people who should know better.

According to a new post published by the St. Louis Federal Reserve’s FRED blog, the money multiplier “describes how the supply of private money (deposits) responds to the monetary base”:

As banks accumulate excess reserves in their account, they expand their deposits and lending activities.

No. No, this is not what the money multiplier is, nor what banks …