This could be no clearer evidence that Krugman is unfit to call himself any kind of economist. Even Keynesians understand that prices are set at the margin and that expected future developments are factored into prices. An all-out drilling program would substantially increase supply in the relatively short term and create the expectation that more supply would be coming on line year after year. This would lead to a substantial decrease in energy prices.
What Krugman is really doing is giving the typical semi-literate “studies major” or “english major” liberal something to defend Obamalini with: “Oh yeah? What do you know? Paul Krugman, who is a Nobel Prize winning economist, says....”
Krugman is doing this deliberately, and it is completely dishonest.
Why does anyone read Krugman? All he does is lie.