I just went through the DSGE wiki page [1]. It says the following about the model, which if true, then I can see why it is an completely unserious model.
> Below is an example of the set of assumptions a DSGE is built upon:
> Perfect competition in all markets
> All prices adjust instantaneously
> Rational expectations
> No asymmetric information
> The competitive equilibrium is Pareto optimal
> Firms are identical and price takers
> Infinitely lived identical price-taking households
> to which the following frictions are added:
> Distortionary taxes (Labour taxes) – to account for not lump-sum taxation
> Habit persistence (the period utility function depends on a quasi-difference of consumption)
> Adjustment costs on investments – to make investments less volatile
> Labour adjustment costs – to account for costs firms face when changing the level of employment
> Below is an example of the set of assumptions a DSGE is built upon:
> to which the following frictions are added: [1] https://en.wikipedia.org/wiki/Dynamic_stochastic_general_equ...