This paper attempts to model and simulate realistically the macroeconomic process generated by the massive immigration of Soviet Jews to Israel, which started at the end of 1989. The framework is a dynamic optimization model of an open economy calibrated to Israeli data — including the national income accounts, tax rates, and projections of immigration from 1990 to 1994. The aim of this analysis is to analyze the quantitative effects of different policy instruments the adjustment process triggered by the immigration.