Based On System Dynamics Rural Financial Ecological Environment Research

System Dynamics is known as a comprehensive interdisciplinary subject used to understand and settle the systematic issues. System Dynamics that features the macroscopic visual angle and the simulation method is universally applied to practice of a variety of management decisions throughout the various systems within the society.Zhou Xaochuan firstly puts forward the bionic concept of Financial Ecology, which was used to explain the intricate relationships between financial institutions and related stakeholders. The Rural Financial Ecological Environment refers to the interconnection between the related stakeholders and the different financial institutions that offer financial services to rural economic development.. This article studies the Rural Financial Ecological Environment as a system by means of technical methods of System Dynamics. Employing the Causal Chains and Feedback Loop theories of System Dynamics, the author researches various policies involved in agricultural financial environment and then analyzes the policy formulation background, the policy outcomes and the interconnection between each other from a macroscopic perspective. Finally, the reasons of policy failures and the related solutions to them are tentatively presented.The background, significance of the research and the current situation of the related research domestic and overseas are narrated in the first section of the paper. The basic concepts, the basic research process and the simulation tool-----VENSIM of System Dynamics were included in the second section. According to the basic research process of System Dynamics, the author analyzes the goals, the boundary, the functions of each factors and the flow of information of Rural Financial Ecological Environment system and then discusses the causality of the issues and the improvement of policy about the Rural Financial Ecological Environment.Main innovation points of this paper includes applying the research process and research method of System Dynamics to Rural Financial Ecological Environment system, constructing the diagram of causality and flow of information, studying the related polices and regulations involved in agricultural issues by means of tools of System Dynamics so as to make some basic suggestions.