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

[1] https://en.wikipedia.org/wiki/Dynamic_stochastic_general_equ...