<p>Unfortunately, the answer is so broad I'm not sure how useful it may be.</p>

<p>First things first, you'd need a model for the economy. There are various around, in the last few years DSGE models like RBCM and NKM are popular. Pick the one that you think is the most appropriate.</p>

<p>After that, procure data from the past for calibrating the parameters of your model. The interest rate, of course, will be set by you.</p>

<p>Finally, you can use R, Matlab or Octave to simulate, given your model and parameters, a set of outcomes and provide a result for each interest rate.</p>

CC BY-SA 3.0
2016-04-04T21:44:29.173Z
2016-04-04T21:44:29.173Z
one_teach_wonder
<p>Is there open source software that simulates the effects of interest rates on an economy?</p>

CC BY-SA 3.0
2016-04-12T15:46:06.403Z
Hi. We'd like to answer your question. To help, try editing your answer to be more specific about which effects you would like to simulate.
jmbejara
<reference-request><mathematical-economics><interest-rate><software><simulations>
Software to simulate the effects of interest rates on an economy?
Geremia
# Software to simulate the effects of interest rates on an economy?

(Asked by: username_0 on 2016-04-04)

Is there open source software that simulates the effects of interest rates on an economy?

**Tags:** reference-request, mathematical-economics, interest-rate, software, simulations

> **Comments:**
> **username_1**: Hi. We'd like to answer your question. To help, try editing your answer to be more specific about which effects you would like to simulate.  

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## 1 answers

### Answer by username_2 on 2016-04-04. Score: 3 | Accepted answer

Unfortunately, the answer is so broad I'm not sure how useful it may be.

First things first, you'd need a model for the economy. There are various around, in the last few years DSGE models like RBCM and NKM are popular. Pick the one that you think is the most appropriate.

After that, procure data from the past for calibrating the parameters of your model. The interest rate, of course, will be set by you.

Finally, you can use R, Matlab or Octave to simulate, given your model and parameters, a set of outcomes and provide a result for each interest rate.


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