High inflation imposes various costs on society. Maintain a slow growth in the number of money policymakers do to keep inflation at a low level.
There are only two real costs of inflation in this economy. Inefficient management of transactions due to low currency balances and the need to change advertised prices more frequently (so-called menu costs).
Today, contractionary monetary policy is the more popular way to control inflation. The goal of contractionary policymakers is to reduce the money supply within the economy by raising interest rates. 5 This slows economic growth as borrowing costs rise and consumers and businesses spend less.
The product gets failed if the price of the product is more than what the buyer has an access.
<u>not listening to the voice of the engineer
: </u>This reason may be suitable but than engineers, the manager or the owner or the shareholder might know the market demand and will be able to decide the right product release to the market.
<u>b. too much advertising or too aggressive a tone for it
:</u> Advertisement is necessary to make the product to get registered in the mind. But this reason may no suit the flop of a product.
<u>c. failure to anticipate competitors actions: </u>This might be a reason in some case but not always.