What do you mean by DSGE?

0 50 Views | Posted 8 years ago
Asked by Pawan Sharma

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    Answered by

    Lalit Bhandari If I agreed with you, we'd both be wrong! | Scholar-Level 16

    8 years ago
    Hi Pawan,
    Dynamic stochastic general equilibrium modeling (abbreviated DSGE or sometimes SDGE or DGE) is a branch of applied general equilibrium theory that is influential in contemporary macroeconomics. The DSGE methodology attempts to explain aggregate economic phenomena, such as economic growth, business cycles, and the effects of monetary and fiscal policy, on the basis of macroeconomic models derived from microeconomic principles.
    All the best.

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