I heard this term the other day while I was in a cleaning fit and it made me stop and pay attention. Sadly, I am so very literal I at first thought they were discussing emotionally blue chefs. What they were talking about was a "waste not, want not" kind of cooking. I didn't know there was a technical term for it. It is the way I always have cooked, I am pretty sure my mom had a huge impact on forming this idea.
For example, you purchase a chicken to bake for dinner, so you serve baked chicken for dinner, you take all the leftover meat off the bone for another meal or casserole, and then you take the chicken carcass and using all your veggie scraps make chicken stock for another meal of soup. So you are getting three or more meals out of one chicken. (this is a huge reason why buying a whole chicken is better than just the individual cuts).
Or if I make rice for dinner I will make a big batch, then turn it into rice cereal for breakfast the next morning, and then into fried rice another night or even rice pudding for dessert.
That was always just something I did, cause I saw my mom do it, but I guess now that the economy is a little tighter its become trendy to be frugal. Now I am on a hunt for more frugal/depression type recipes or ideas. Anyone have any to throw my way? (except the victory garden, I have a black thumb and feel to much pity to put the plants under my "tender care").