This article critically examines the reliance on macroeconomic aggregates, such as GDP and the unemployment rate, in economic analysis and policy-making, from the Austrian School perspective. These aggregates oversimplify complex economic phenomena, concealing sectoral and temporal distortions that lead to misguided interventions. Drawing on Austrian concepts like the Hayekian triangle and intertemporal misallocation, the study analyzes historical cases, including the Great Depression (1929–1933), the Spanish real estate bubble (2000–2008), and Brazil’s economic crises (1980–1990, 2008–2009). It proposes alternative indicators, such as relative prices, sectoral bankruptcy rates, and price dispersion, to better capture economic dynamics. The methodology integrates theoretical insights from Mises, Hayek, and Huerta de Soto with empirical analyses of sectoral and regional data. The findings highlight the failure of aggregates to reflect real economic coordination, advocating market-based signals for decision-making. The article concludes with policy implications, emphasizing liberalization and decentralized coordination.
