They have to be intimidated into believing it by the men in the white lab coats!
I]t is almost always true that the vast majority of my students think that inflation is the real problem.
And, of course, the Keynesian Vernengo then has to set them straight using his powers of imprimatur as a “professor”.
That students do not naturally take to the Keynesian Hoax is a marvelous thing to know. Having been an advocate of the Austrian School since 1973, this Vernengo post supports my longstanding theory that not only is Keynesianism false but it is counter-intuitive. People have to be intimidated into believing it, like in “The Emperor’s New Clothes”.
Of course “inflation” is the problem. It is the cause of the distortions in the price, investment and capital structures that result in the boom/bust cycle and depressions. If people can be inoculated with sound Austrian analysis in advance, they would never fall for the Keynesian Hoax.