DSGE
Noun
Meaning
DSGE (uncountable)
(economics) Initialism of dynamic stochastic general equilibrium.
Anagrams
Examples
Macroeconomists build dynamic stochastic general equilibrium (DSGE) models that describe the dynamics of the whole economy as the result of the interdependent optimizing decisions of workers, consumers, investors, and governments.
The nominal rigidity of new Keynesian theory was combined with rational expectations and the RBC methodology to produce dynamic stochastic general equilibrium (DSGE) models.