Theoretical Thinking Of The Financial Function Of National Debt In Our Country

National debt is not only an important fiscal problem, but also an importantfinancial problem to a great extent. Under the modern market economy condition,national debt is the economic important means of government's macrocontrol, and itis combination of the best of fiscal policy and monetary policy which is joined. Fromthe issue practice and mechanism of the national debt of our country,what our countryhas paid attention to all the time is the full play of the fiscal function of national debt,and has neglected the financial function relatively.With the perfection of thesocialist market economy system of our country and transition of the positive fiscalpolicy, we should transfer and pay more attention to financial function of nationaldebt. So, to study financial function of national debt has an important theoretical andrealistic meaning. This thesis points out financial function of national debt embodies concentratedlya reflection of the open market operation business from the angel of coordination andcooperation between the fiscal policy and monetary policy, and have analysed thedefect of national debt market as the stage of macro-control and the bridge of twomajor policies connections. Propose recommendations of perfecting the national debtmarket, and realizing the real connections of two major macroeconomic policies. The full thesis divides into five parts altogether. First part is the foreword. At firstsum up the function, then has reviewed the theory evolution that the west analysesabout the function of national debt, finally investigated national debt issuecharacteristic of our country since reform and opening-up. Find the function ofnational debt is imperfect in our country, therefore propose the theme of this thesis. Second part have made brief analysis to the fiscal function of national debt of ourcountry, which investigated the practice of national debt as a tool of fiscal policy inChina since 1998. Though the direct contribution to the economic growth ofinvestment policy of national debt is remarkable since 1998, namely which has keptthe balance on the national total supply and demand through the direct output result,but analyse carefully that will find, this policy has not started consumption demandand makes economy get onto the track of benign cycle according to Keynes' policyprinciple. As to this, this thesis analyses reasons from the absolute magnitude of theincome(uncertainty of income expectation in the future) and incomestructure(expanding constantly of resident gap between rich and poor) separatelywhich causes national debt policy operation mechanism out of shape. The third part have investigated the financial function of the national debt in ourcountry, and thinks the financial function embodies a concentrated reflection of theopen market operation business of Central Bank. The national debt market in ourcountry has numerous defects at present, for instance, small scale of national debtmarket, circulating market segmentation, unreasonable term structure, especiallyshort-term national debt getting small in quantity, unreasonable participant structure,trade way not getting overall etc. All these hinder seriously the open market operationof Central Bank. As to this, put forward the policy recommendations of perfecting thenational debt market further in order to give full play to the financial function of thenational debt. The fourth part have studied the scale of national debt in macrocontrol. Havedone the review to the domestic question about the present scale of national debt ofour country at first, and draw a conclusion: national debt has fiscal and financialdouble function concurrently, so views which lays particular stress on any kind offunction are not overall. Then, have investigated the current scale of national debt ofour country from several indexes reflecting ability of the national economy borrowingdebt and financial paying debt, which is warning experience ones to maintaingovernment's prestige and take precautions against the risk. Put forward the theory modelwhich confirms the...