In reply to Lionel Teed.

In 2011 I did not read much about simulation of time series. However, I am sure that much has been written about time series simulation in the economics and financial literature.

SAS/IML software has several built-in functions for simulating ARMA time series. See the documentation of the ARMASIM (univariate) and VARMASIM (multivariate) functions. SAS/ETS software has other tools, and also comes with a GUI application called SAS Simulation Studio, which is used for discrete event simulation and modeling.