Another unfortunate outcome is that the typical economics curriculum tends to emphasise the frictionless benchmark more than the realistic variants. Shifting the academic focus to a world with frictions would have a welcome impact on teaching, allowing central banks to hire from a pool of young economists better equipped with methods and tools to address policy challenges.
BIS Review 80/2008  3  enhancing machinery and equipment – much of which is imported – has become less expensive for all firms, not just commodity producers. These benefits are important.