De Grauwe gets raw on Central Banks and their reliance on DSGE modeling:
One of the surprising developments in macroeconomics is the systematic incorporation of the paradigm of the utility maximizing forward looking and fully informed agent into macroeconomic models. This development started with the rational expectations revolution of the 1970s, which taught us that macroeconomic models can only be accepted if agents’ expectations are consistent with the underlying model structure. The real business cycle theory (RBC) introduced the idea that macroeconomic models should be “micro-founded”, i.e. should be based on dynamic utility maximization of individuals.