Analysis On Monetary Policy Effect Of National Debt Market

This thesis focuses on the correlations between national debt market and monetary policies. First, the author analyses the theories relevant to national debt market, including the development of western and China's theories on national debt, the status of national debt market in financial market, the interdependence of national debt market and monetary policies; secondly, the author studies the monetary policy's effect on national debt market, focusing on the relationship between national debt market and currency supply, interest rate, public market's business operation, international balance and the internationalization of RMB, a detailed analysis on the current situation of China's monetary policy's effect on the national debt market is presented as well; thirdly, the author analyzes the factors restricting the effects of monetary policy on national debt market; and lastly, the author proposes some suggestions and measures on how to perfect China's domestic national debt market.Based on the analysis, the author draws the conclusion that the less developed national debt market is hindering the effect of monetary policy. This hindrance is mainly due to the poor liquidity of national debt market, such as singular structure of the due term of national debt issued, low positioning of the participants of the national debt market; poor ability of formulating pricing, namely, the role of the rate of national debt played as the benchmark rate of financial market is not obvious; aiming at overcoming the weaknesses of our national debt market, the author proposes a series of suggestions and measures on how to perfect the national debt market, such as bettering the mechanism of issuing national debt, optimizing the structure of debt terms and the makeup of debt holders, cultivating organizational investors, developing national debt investment funds, developing national debt agencies, and building a standardized and better organized national debt market system, and actively developing national debt's futures market.