Money, reserves, and the transmission of monetary policy: Does the money multiplier exist?

► We demonstrate that the money multiplier and the bank lending channel are archaic for the US. ► Recent literature provided evidence in favor of the bank lending channel and the money multiplier. ► We clarify some of the findings of the recent times. ► Our paper is one of the first papers that provides a thorough institutional and empirical analysis. ► Our findings are directly relevant for interpreting the performances of the current Fed policies.