Dynamic Stochastic General Equilibrium (DSGE) models have emerged as a pivotal instrument in the field of macroeconomic analysis, providing a structured framework through which economists can explore the complexities of economic interactions over time. The significance of these models lies not only in their theoretical foundations but also in their practical applications, showcasing how they can inform monetary and fiscal policies. As evidenced by recent efforts to apply DSGE models to specific economies, such as the Brazilian case outlined in the literature, these frameworks have been tailored to reflect unique economic conditions, illustrating their adaptability and robustness in analysis  (Carmargo B et al., 2016) . 

The theoretical foundations of Dynamic Stochastic General Equilibrium (DSGE) models are pivotal for understanding their application in macroeconomic analysis.

Alfrânio Rodrigo Trescher, M. Tessmann (2025). DSGE Models: Practical Methodological Note and Recent Trends.

https://www.semanticscholar.org/paper/1ecc5afbdf2c849063a7c64b1e11a56dcf59b5c8

Rohit Kashinath Pithale (2025). DSGE Modelling and the Indian Economy: A Path to Enhanced Macroeconomic Forecasting and Policy Making.

https://www.semanticscholar.org/paper/8f978adf2a9777b1d1f5c7f3cb79086a938c134e

Braz Carmargo, Bernardo Guimaraes (2016). Introduction to the special issue on DSGE models for the Brazilian economy.

https://www.semanticscholar.org/paper/c8fd74e8f6a1aa2e17b9d461fa582739b52ab876

David Colander (2006). Post Walrasian Macroeconomics: Beyond the Dynamic Stochastic General Equilibrium Model. www.cambridge.org/9780521865487

Frank Smets, Rafael Wouters (2007). Shocks and Frictions in US Business Cycles: A Bayesian DSGE Approach. https://doi.org/10.1257/aer.97.3.586