Monetary targets must be brought back into the fold of central banking, Tiff Macklem, the senior deputy governor of the Bank of Canada, said Tuesday.

Macklem used a speech in Montréal to explain that looking at monetary aggregates was crucial given the events of the crisis, without advocating a return to monetary targeting. "When the financial system is not working normally, we cannot rely on the short-cut from interest rates to output and inflation," Macklem said. "Focussing on the transmission