The circular-flow approach is decidedly Neoclassical, and suffers from many problems which traditional Austrians would notice. The circular-flow diagram’s greatest problem is, in fact, its circularity.
Teaching Microeconomic Principles well, a blend of good pedagogy and good economics, is the professional obligation of many economists. Since such courses are conventionally grounded in neoclassical theory,
Austrians frequently lament the absence of an Austrian undergraduate money-macro curriculum, especially at the intermediate level.
Morgan O. Reynolds discusses W. H.
Gary G.
Lawrence H. White
Recorded at the Mises Institute in Auburn, Alabama, on 21 July 2014.
Jeff Deist discusses how the Fed creates a perilous landscape in which there is no honest pricing—everything has been distorted—even at the consumer level.
The cut-wages-through-inflation strategy is part of Krugman’s heads-I-win-tails-you-lose way of arguing.
Distrust nominal prices; they will only land you in an inextricable labyrinth.
