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This book presents a formal introduction to the real business cycle (RBC) model with consideration of monetary and asset pricing implications. In the first part, the mechanics underlying the basic RBC model are thoroughly reviewed, with discussion of various commonly employed solution methods. The second part studies the analytic features characterizing the famous 'new neoclassical synthesis', including money together with other assets, by exploring the role of different approaches adopted in inserting money in the basic RBC model. Special attention is devoted to the design of nominal and real rigidities to be included in the model: several methodologies are contrasted (wage and price rigidities), and their impact on the design of the aggregate supply curve is considered. The final part of the book explores the implications of the previous setting for asset pricing, by studying the role of term structure of interest rates and stock prices within a dynamic stochastic general equilibrium model. Special attention is devoted to the analysis of pricing kernel in asset pricing by showing how different assumptions regarding asset substitutability impact on the design of the pricing kernel. The text concludes with a discussion of the risk appetite problem and its impact on asset pricing together with the implications of macro-financial aspects for portfolio allocation problems. The book presents new results together with more consolidated theoretical insights from the more recent literature.