Standard general equilibrium models assume that money is a veil. Monetary and financial elements are therefore neglected. This strong assumption makes these models irrelevant when monetary policy and financial markets play a major role as shown by the recent economic and financial crisis in the US and in Europe.

This advanced course will introduce all the tools for constructing and implementing dynamic monetary and financial general equilibrium models for policy analysis. By the end of the course the participants will have acquired detailed knowledge of and extensive hands-on experience in building stock-flow-consistent social accounting matrices and models, formulating scenarios, and running policy simulations. The models will be implemented in the GAMS software.