Keynes works if policy makers lie to the voters

Krugman criticizing Lucas:

The Lesser Depression arrives. It’s clearly not a technological shock; clearly, also, nobody is confused about whether we’re in a slump, as the old Lucas model required.

Lucas caims we got our signal crossed on shortages. Krugman clams we have plenty of oil, we just suffer from shock.  Lucas is right, in fact, there is a written policy of denial of the oil shortage in the DeLong.Krugman.Thoma nexus, they are not allowed to consider shortage as that would invalidate their desire to expand government.  The economic crisis comission was not allowed to consider oil shortages.  Hamilton's continuing work on oil supply barely gets a mention.

So why does Yglesias now accept that fact of higher oil prices?  Because Yglesias doesn't have to deal with 30 years of wasted effort with the bogus Keynesianism. We do not suffer three year hysterical economic shocks.