Isn't your criticism of DSGE a little too easy? I don't see the silliness.
Here's my understanding (I am not an expert): DSGE is designed to give an approximate response to exogenous shocks for NL models. For that, it needs to start from an equilibrium.
You seem to say that shocking from an equilibrium is silly. Can you explain me why? I wonder what alternative solution you have in mind that could improve DSGE.
Here's my understanding (I am not an expert): DSGE is designed to give an approximate response to exogenous shocks for NL models. For that, it needs to start from an equilibrium.
You seem to say that shocking from an equilibrium is silly. Can you explain me why? I wonder what alternative solution you have in mind that could improve DSGE.