Research on Chinese Economic Effect of Central Bank Raising Interest Rates Based on System Dynamics

The problem of the Central Bank raising interest rates is being deeply concerned at present. This paper analyzes the Chinese economic effect of Central Bank raising interest rates using system dynamics. Firstly, the paper analyzes the dissipate structure of the economic effect of Central Bank raising interest rates using the self-organization theory. Secondly, based on the above analyzed dissipate structure, the paper constructs the system dynamics model of Chinese economic effect of Central Bank raising interest rates. Then the paper makes simulating program of the dynamics model, including module equations of simulation, module decomposition, and keen analysis form. Finally, the paper brings forward the views to the simulated result of the economic effect of Central Bank raising interest rates.