In Gregory Mankiw's Principles of Economics he states "society faces a short-run tradeoff between inflation and unemployment". He then goes on to explain a little about the Phillips Curve. Obviously he denies that the Phillips Curve exists in any long-run fashion, but does adamantly state that a short-run tradeoff between unemployment and inflation exist, because inflation will temporarily boost "aggregate demand". I fully understand the argument about the Phillips Curve in the long-run, but what is the Austrian view of this supposed short-run inflation/unemployment phenomena?
It rarely ever held up to evidence. Even less so after the 60's.