How did the DSGE name begin and become so important in world of macro/monetary economics ?

Beatrice Cherrier has a post on the topic.

According to JSTOR, it was Robert King and Charles Plosser who, in  their famous 1984 paper titled Real Business Cycles, used the term DSGE for the first time, though with a coma (their 1982 NBER draft did not contain the term): “Analysis of dynamic, stochastic general equilibrium models is a difficult task. One strategy for characterizing equilibrium prices and quantities is to study the planning problem for a representative agent,” they explained upon deriving equilibrium prices and quantities.

There is lot more in the post.

The profession is really poor with naming such terms/models. Most of the time these names just scare/intimidate you. One does not know whether that is the intended purpose as well.

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