Analysis On The Proper Scale Of China's National Debt

After reforming and opening , China's economy has developed in a high speed , at the mean time , the issuing scale of national debt has become larger and larger since the national debt market was recovered in 1981. Especially after 1998 , China has implemented the active fiscal policy , which promote the development of macroeconomics. With the debt scale goes higher and higher , some economists and policy makers begin to worry about : Will the debt scale result in the fiscal risk even the government debt crisis ? What is the proper national debt scale in China? Answers for these questions will help the policy makers make out the rational decisions .About national debt, in this paper , it refers to the domestic debt of China ; the proper scale means a rational range , but not a number ; the scale refers to the total amount of issued national debt of the year ; and the issue policy focuses on the issue scale and its effects .There are four sections in this paper . Section one introduces the functions of national debt and the development of the debt theories in western countries. Section two takes a review on China's national debt market , and point out problems of the market . Section three analyses the proper scale of national debt from various angles , and also analyses the probability of increasing the issue scale . Section four introduces the concept of the sustainability of national debt, and also presents the suggestions for national debt policy of China .In order to make the conclusion more precise , the research takes a dynamic point of view , also with some other approaches , such as theoretical analysis and empirical analysis , qualitative analysis and quantitative analysis , all these is to make the conclusion more reliable .