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On Macroeconomic Effect And Policies Of National Debt

Posted on:2003-08-20Degree:DoctorType:Dissertation
Country:ChinaCandidate:Z Y PengFull Text:PDF
GTID:1116360092975709Subject:Political economy
Abstract/Summary:PDF Full Text Request
Issuing treasure bonds is already is a common way to raise money of government spending in modern market-oriented economic countries . Due to the concept of classic public debt,however,for a long time and till the Great Crisis in the thirties of twenties Century,national debt had not been thought good . So it was very careful for governments to issue treasure bonds practically while budgetary balance was the main purpose for finance in this period . After the Great Crisis in the thirties of twenties Century,there came Keynesian Economics which is totally different from the former concept,holding that to carry out deficit policy stimulates domestic effective demand for economic stability and growth via issuing treasure bonds . Guided by Marxism political economics,learning from westerns and considering realities in China,this paper studies the policies of national debt after the open policy and reform macroscopically:As the year of 1997 its boundary the whole research can be divided into two big parts:one is before 1997,the other isafter 1997 and the part before 1997 can be divided into two parts:one is before 1994,the other is after 1994. Treasure bonds issued before 1994 was mainly to support the reform of tax reduction and profit transfer,and it had boosted aggregate demand by positive analysis,the bonds 1994 and 1997 was mainly for development of investment of infrastructure,while after 1998,the policy in China was new since it aimed for increasing domestic demand. The author thinks that with the influence of systematic and structural conflict,inadequate demand in China after 1998 is not as all the same as the recession or depression stated in western periodic economic theory because it will remain a rather long period. So the writer here believes sometime in the future treasure bonds in China can still increase reasonably and fiscal policy will continue to play an important role in economic growth. Dynamically and statically,the paper analyses the sustainability of national debt policy and financial risk in China:Dynamically,financial risks can be within safe scope if basic deficit ratio can be kept between 1 percent and 2 percent;Statically,studing the warning line of financial risks,the author analyses the usages of treasure bonds,favouring that it should mainly support system reformation and economic restructuring in the future .At last the writer makes a research for applying policy on the size and types of treasure bonds in macroeconomic regulation.
Keywords/Search Tags:National Debt, Macroeconomic Effect, System Reformation, Economic Restructuring, Financial Risk
PDF Full Text Request
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