The document discusses the preconditions necessary for the success of inflation targeting as a monetary policy approach. These preconditions include a firm commitment to price stability, central bank independence, good forecasting ability, transparency, accountability, and a sound financial system. It also describes the inflation targeting process, which involves the government setting an inflation target two years in advance, the central bank announcing the target, assessing forecasts and monetary conditions to decide on the monetary policy stance. The document outlines potential explanation clauses for deviating from the inflation target, such as volatility in agricultural prices, changes in government policy, and fluctuations in oil prices.