Peter Gorden is smarter than the average economist

Transaction costs are the key part of transaction rates and transaction noise, and transaction rates make up the economy.  How could economists leave this out of their models and still make useful results? They cannot.

Transaction costs: It seems strange but for most of its life, economics was a field of study that did not recognize transaction costs. Look at the 200-year Ngram results, below. Ronald Coase changed things. Without him, we would be stuck with Nirvana economics, still teaching things that students could easily see are not terribly useful or linked to the world they know.