Theoretical and Empirical Research on the Effect of Chinese National Debt
|Keywords||National debt Investmen Economic growth Long-term Short-term|
As China’s economy gradually is in the course of the market, government bonds that always make up the deficit has been developed into one of the primary means of regulation of the economy. As the best combination of fiscal policy and monetary policy,national debt is playing an more and more important role in the regulation of the economy. Along with the phynominon of deflation and lack of investment and consumption from 1990’s, there are many diffculties in the growth of the economy,which is because of economic soft landing and Asian financial crisis. To this end, China began to expand the implementation of the issuance of treasury bonds as the main means of active fiscal policy and open market operations as the main tool for sound monetary policy since 1998, counter-cyclical macro-economy control. After years of policy implementation, fiscal policy is constantly changing as economic situation changing, from positive to stable and then to positive again.National bonds play an important role in economic growth through the impact on investment and consumption in the ten years of regulatory cycle.It is a great contribution that government bonds eliminate negative impact of economic crisis and stimulate economic growth. Therefore, the study of economic effects of the national debt has important theoretical and practical significance. In this paper, absorbing and drawing on the basis of previous research results, we study economic effection of national bonds from the perspective of short-term and long-term ,do theoretical and empirical analysis and give some policy recommendations.