David Beckworth at Macro and Other Market Musings calls the crashing of the US money multiplier a "new normal". Normally, the money multiplier will fall during recessions, as loan growth dries up (given that the money base does not offset the contraction); however, the precipitous declines of the money multiplier of late has been anything but normal. This is likewise true of the multipliers in other QE countries (UK and I have argued Japan is up to something), and the ECB (not a QE country, really).
The chart illustrates money multipliers, calculated as the relevant measure of the money stock divided by the monetary base. (Monetary base, or high-powered money, is the currency in circulation plus total reserves held by the banking institution with the central bank.) Global central banks have been easing substantially (effectively to zero in some cases), thereby raising bank reserves. However, banks are reluctant to lend the new liquidity, and multipliers have tumbled in the UK, the US, and the Eurozone.
Japan: The money multiplier remains rather stable.
UK and US: The money multipliers are falling. I find it interesting that they took a turn for the worse amid the announced government bond purchase programs (announcements here and here).
Eurozone: The money multiplier is rebounding, intriguing. This gives some credence to the Eurozone's reluctance to engage in QE at this point in the game.
In the US and the UK, the multipliers are once again crashing. To me, this clearly illustrates how markets are too bearish on inflation - there is no way that the Fed's QE policy (raising the high-powered base by "printing money") will turn into inflationary pressures until this multiplier picks back up on bank lending anew.
Banks are holding (hoarding) $881.6 billion in reserves in April (mostly excess), up from $43.6 billion just a year ago. Until this high-powered money makes its way onto the open market, via the multiplier, it will not turn into money nor inflation.
Inflation is not an imminent threat - perhaps 12 months out, but certainly not right now. As such, bond markets are overly bearish on inflation.