What does it mean to issue national debt?

Issuing national debt refers to an economic behavior that a government issues bonds to the public or other investors in order to raise funds, and promises to pay certain interest within a certain period of time and repay the principal at maturity. Treasury bonds are usually issued and managed by the central government or its authorized institutions (such as the Ministry of Finance).

National debt is a financial instrument with the following characteristics:

1. security: the issuer of national debt is the government, which is generally considered as one of the safest investment tools. The government has the means of taxation and currency issuance to ensure the repayment ability of national debt.

2. Liquidity: Treasury bonds have good liquidity in the secondary market, and investors can sell or transfer treasury bonds at any time to obtain cash.

3. Profitability: Treasury bonds usually provide a certain amount of interest income, and the specific interest rate is determined according to the market environment, duration and other factors at the time of issuance.

4. Tax preference: In some countries and regions, debt interest may enjoy tax preference for its income, thus improving the actual return of investors.

National debt plays an important role in the macro economy, mainly including the following aspects:

1. financing function: the government issues treasury bonds to raise funds for infrastructure construction, education, medical care and other public utilities to make up for the fiscal deficit.

2. Adjustment function: The issuance and repayment of national debt can affect the money supply in the market, thus adjusting the macro-economy. For example, when the economic growth is overheated, the government can absorb excess liquidity in the market by issuing government bonds, thus alleviating inflationary pressure.

3. Price stability: National debt is usually regarded as a risk-free asset, and its interest rate level has important reference significance in the financial market. The change of national debt interest rate will affect the prices of other financial products, thus affecting the stability of the whole financial market.

4. Policy tools: National debt can also be used as a tool of monetary policy. For example, if the central bank buys and sells treasury bonds in the open market, it can affect the money supply in the market, thus achieving the goal of monetary policy.

In a word, issuing government bonds is an important means for the government to raise funds, regulate the economy and achieve policy objectives, which is of great significance to a country's economic development and financial stability.