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Monetary targeting, adopted on a widespread basis around 1975, is apparently a policy on the decline. Certainly in the U.S. less emphasis is now placed on the public announcements made by the Fed. Yet targeting is still important in countries which have both successfully achieved targets and, at the same time, managed to reduce the growth rate of monetary aggregates and inflation (West Germany and Switzerland for example). This paper discusses why targeting may have failed in an institutional setting such as provided by the U.S. It proposes a theoretical model for analyzing the practice of making public anouncements about future monetary policy and identifies necessary conditions for them to be successful.