Dynamic stochastic general equilibrium models are much maligned by critics of mainstream economics, but they have not performed as badly as many claim, Luiz Awazu Pereira da Silva said in recent remarks.

The Bank for International Settlements’ deputy general manager told a research conference in Basel that it was unfair to accuse DSGE models of being overly simplistic or failing to spot the “once-in-a-century” global financial crisis.

He noted the models had proved useful in shaping the