In this piece, Arnold Kling writes,
DSGE means something like dynamic stochastic general equilibrium, an amazing hi-tech hi-math way of manufacturing data that often has very little empirical relevance. It is one of the worst innovations in macroeconomics... ever. Almost as bad as Hansonian Keynesianism. As I used to write, 20 years ago:
The advocates of DSGE implicitly claim that a certain mathematical approach is both necessary and sufficient to make macro models rigorous. I view that claim as a baloney sandwich.
The new macro: rationalized expectorations and overlapping generalizations.