Written for graduate students in economics and finance as well as researchers, this book provides a comprehensive introduction to the construction and solution of dynamic equilibrium models for small open economics. This text shows how such models can be made accessible and operational for confronting various policy issues. Topics covered include the open economy setting, solution methods, as well as policy goals, welfare, and scenarios.
MATLAB is used to solve some application examples. In addition, a supplemental set of MATLAB M-files is available in an appendix.