Analysis About The Economic Effects Of The Treasury Bonds

Over past several years, facing economic and finance situation, Chinese government has adopted pro-active fiscal policy which take additional treasury bond as the central roles. And has further implemented contra-cyclical regulation policy. For three years later, the fact has proved that the measure is powerful. It has effective changed the passive situation of Chinese national economic, and national economy maintain high-speed growth. This all relate to the active function of treasury bond. The paper mainly adopt the method of the combination of positive analysis with normative analysis. It comprehensive analyze the effects of treasury bond. Allocation effects of resource income distribution effects, aggregate demand effects and monetary effects. The paper indicate that government raise the fund by treasury bond issuance, and then government spend it, All that can reach the target of optimizing the resources allocation and readjusting econmic structure. At the same time, it regulate income distribution and time, it regulate income distribution and expand sociat aggregate demand. These can named as treasury bond's effects: allocation effects of resources, income distribution effects, aggregate demand effects. The paper also anaylze the different treasury bond market participants which trade in the three stages of treasury bond operation. It will take effect on money supply which will be expansion or contraction, Furthermore, it comprehensive analyze monetary effects of treasury bond.