The Austrian theory rests, not on a catalyzing effect of core inflation or headline inflation, but on changes in relative prices that cause resources to be allocated in ultimately unsustainable ways. The Great Depression was not preceded by much inflation because productivity improvements allowed for increases in bank credit without increasing (by much) the price level. Hayek said repeatedly that the price level aggregate can hide the distortions basic to the cycle.
— Mario Rizzo, “Clarifications of the Austro-Wicksellian Business Cycle Theory“
Who Plans Whom? 