If we have no equilibria and we suffer demand shock then

Why is it that only Keynesian economists can diagnose an economic shock that is stable and lasts for two years when socioloigists never report mass hysteria lasting that long? Most sociologists would reclassify the effect as a cultural difference after a year or two.

Here we are, two years after the crash, and Keynesians are still claiming that we are not stable, we are in a temporary shock, they say. I can see why they are in a hurry, their theory has a limited lifetime. A better diagnosis might be that the Keynesians suffer Rahm "never waste a crisis" syndrome.

A good essay on primitive Keynes

From the independent Institute. The main point here is that price is not a level, it is a distribution. If that distribution of prices is distorted, then Keynes aggregate macro does not work. Stimulus will only make the prices more distorted because the constrained resource is actually now the unused resource. So if we suffer an oil shortage, Keynes would have us burn more oil.

HT peter Gordon