I. Functions
1, make up the fiscal deficit. Issuing national debt is a voluntary, paid and flexible way, which only involves the transfer of the right to use funds and is a temporary distribution of social funds and national income;
2. The total amount of money in circulation has not changed. Under normal circumstances, it will not increase the total demand and will not lead to inflation, which is conducive to the balance between supply and demand. It is a common practice in all countries to make up the fiscal deficit with the funds raised by issuing government bonds;
3. Raise construction funds. The main purpose of national debt is to raise construction funds and expand the scale of construction. By issuing treasury bonds, the state can effectively concentrate huge construction funds and speed up economic development;
4. Regulating macroeconomic operation. By issuing treasury bonds, the state can flexibly and effectively implement macroeconomic policies in different periods and promote the sustained, stable and healthy development of the national economy;
5. Open market operation. Open market business refers to the activities of the central bank to adjust the credit scale, money supply and interest rate by buying and selling securities in the open market and investing or withdrawing reserves from the financial system, so as to realize its financial regulation;
Second, introduction
1, national debt (national debt; Government loan, also known as national bond, is a creditor-debtor relationship formed by the state on the basis of its credit and in accordance with the general principles of debt.
2. Treasury bonds are bonds issued by the state, government bonds issued by the central government to raise financial funds, and creditor's rights and debts certificates issued by the central government to investors, promising to pay interest and repay the principal within a certain period of time. Because the issuer of national debt is the country with the highest credit, it is recognized as the safest investment tool;
Third, the main features
1, national debt is a special form of debt, compared with the general creditor-debtor relationship, it has the following characteristics; From the subject of legal relationship, the creditors of national debt can be citizens, legal persons or other organizations at home and abroad, the government of a country or region and international financial organizations, while the debtors can only be countries.
2. From the nature of the legal relationship, the occurrence, change and elimination of the legal relationship of national debt mostly reflect the unilateral will of the state. Although the legal relationship of national debt is equal to other financial legal relationships, it shows a certain subordinate relationship compared with the general creditor-debtor relationship, which is more obvious in the legal relationship of domestic debt.
3. From the realization of legal relationship, national debt is the creditor-debtor relationship with the highest credit rating and the best security; From the debtor's point of view: national debt has the characteristics of voluntariness, compensation and flexibility; From the creditor's point of view, national debt has the characteristics of security, profitability and liquidity.