"We determined that we would not follow the advice of the bitter-end liquidationists and see the whole body of debtors of the United States brought to bankruptcy and the savings of our people brought to destruction."
Here's a passage from Hayek where he's advocating that policymakers should stabilise MV:
At that time [early 1930s] I believed that a process of deflation of some short duration might break the rigidity of wages which I thought was incompatible with a functioning economy.
The thing I found interesting is that Hayek viewed deflation as a way to "break" the rigidity of wages. I think the likes of Krugman are inconsistent about whether rigidities *are* an empirical fact, or *should* be compensated for.
By contrast, Mark Thornton outlines an "Austrian" recipe. The unity stems from recognising the root cause of financial crises - excess credit creation.