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Anonymous users2024-02-06The issuance of treasury bonds is equivalent to the state borrowing money from the people, and treasury bonds are actually IOUs.
In fact, I disagree with this sentence, one of the most basic functions of the national debt is to make up for the fiscal deficit, but the biggest function may not be to make up for the deficit.
Under the conditions of a market economy, in addition to the basic functions of making up for the fiscal deficit and raising construction funds, treasury bonds also play an important role in the following aspects:
1 Formation of market benchmark interest rates:
Interest rates are the core of the entire financial market, and have an important impact on the pricing of financial instruments in markets such as markets, markets, and foreign exchange markets. Treasury bonds are an investment instrument with stable income and very low risk, which makes the interest rate of government bonds at the core of the entire interest rate system and the basis for the pricing of other financial instruments. The issuance and trading of Treasury bonds helps to form a market benchmark interest rate.
The issuance of government bonds will affect the supply and demand of funds in the financial markets, which will cause interest rates to rise and fall. Under the condition that the treasury bond market is fully developed, the coupon rate at the time of issuance of a certain maturity treasury bond represents the expected level of the market interest rate at that time, and the change in the trading of treasury bonds in the secondary market** can reflect the change in the market's expectation of future interest rates in a timely manner.
2 As a combination of fiscal policy and monetary policy:
First of all, expanding the scale of issuance of treasury bonds is the main means by which the state implements a proactive fiscal policy, and the issuance of an additional 270 billion yuan of special treasury bonds in August 1998 to ensure that the economic growth rate reaches 8 percent is a good example.
Second, government bonds, especially short-term government bonds, are the only appropriate tool for central banks to conduct open market operations. The total amount and structure of treasury bonds have an important impact on the effectiveness of open market operations. If the scale of government bonds is too small, the central bank's ability to control the amount of money in the open market is very limited, which is not enough to make the change in the interest rate level meet the requirements of the central bank; If the variety of treasury bonds is single, the structure of holders is unreasonable, and the proportion of small and medium-sized investors holding treasury bonds is too large, it will be difficult to carry out open market operations.
3 As a tool for short-term financing for institutional investors:
The credit risk of treasury bonds is extremely low, and institutional investors can use treasury bonds, which are the most credible standardized**, to carry out repurchase transactions to achieve the purpose of adjusting the balance and deficiency of short-term funds, hedging and strengthening asset management.
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Anonymous users2024-02-05The country that issued the treasury bonds will receive a lot of money, which is counted as income? ~
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Anonymous users2024-02-041. Issuing public bonds to cover the fiscal deficit.
It is a common practice in all countries of the world. This is because, from the debtor's point of view, public debt is voluntary, repayable, and flexible; From the creditor's point of view, public bonds are safe, profitable, and liquid.
2. To a certain extent, the issuance of public bonds is beneficial to both the first and the subscribers, and it is most acceptable to the public to make up for the fiscal deficit through the issuance of public bonds.
3. Under the circumstance that it is difficult to raise taxes and it is not possible to increase the issuance of currency, it is still a feasible measure to make up for the fiscal deficit by issuing treasury bonds. **Through the issuance of bonds, the idle funds of units and individuals can be absorbed, and the country can tide over the period of financial difficulties.
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Anonymous users2024-02-03Summary. Hello Fiscal deficit is the budget deficit, which refers to the deficit in the revenue and expenditure arrangements of a country at the beginning of each fiscal year, when preparing the budget, if the actual implementation result of revenue is greater than expenditure, it is a fiscal surplus.
Public debt refers to a kind of formatted creditor's rights and debt certificates issued to investors in accordance with certain procedures by virtue of their creditworthiness in order to raise financial funds, promising to pay interest and repay the principal at maturity in a certain period.
2. The characteristics are different.
Fiscal deficit refers to the excess of fiscal expenditure over fiscal revenue. Theoretically speaking, fiscal balance is the best fiscal situation, but in reality, fiscal revenue and expenditure are offset or slightly surplus.
Public debt is a special form of income. Public debt is both repayable and voluntary. With the exception of certain compulsory public bonds for a specific period of time, the public has complete autonomy in terms of whether and how much to subscribe.
3. The influencing factors are different.
The main influencing factors of fiscal deficit are inflation, interest rates, cyclicality, liabilities, capital budgeting, etc. The main influencing factors of public debt are stagnant growth, high debt, and unbalanced development.
Comparison of public debt with various ways of financing deficits in public finance.
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Hello Fiscal deficit is the budget deficit, which refers to the deficit in the revenue and expenditure arrangements of a country at the beginning of each fiscal year, when preparing the budget, if the actual implementation result of revenue is greater than expenditure, it is a fiscal surplus. Public debt refers to a kind of formatted creditor's rights and debt certificates issued to investors in accordance with certain procedures by virtue of their creditworthiness in order to raise financial funds, promising to pay interest and repay the principal at maturity in a certain period. 2. Different characteristics: Fiscal deficit refers to the part of fiscal expenditure that exceeds fiscal revenue.
Theoretically speaking, fiscal balance is the best fiscal situation, but in reality, fiscal revenue and expenditure are offset or slightly surplus. Public debt is a special form of income. Public debt is both repayable and voluntary.
Except for certain compulsory public debt searches for a specific period of time, the public has complete autonomy in terms of whether and how much to subscribe. 3. The main influencing factors of different fiscal deficits are inflation, interest rate, cyclicality, liabilities, capital budget, etc. The main influencing factors of public debt are stagnant growth, high debt, and unbalanced development. Thank you.
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Anonymous users2024-02-02The implementation of the fiscal deficit policy is to increase investment, and to increase investment needs can only be raised through the issuance of treasury bonds.
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Anonymous users2024-02-01Fiscal deficit refers to the beginning of each fiscal year, a country will always formulate a fiscal budget plan for the year, if the actual implementation result of revenue is greater than expenditure, for the fiscal surplus, expenditure is greater than the economic phenomenon of income, it is called fiscal deficit. Theoretically speaking, fiscal balance is the best case empty key for fiscal revenue, and in reality, fiscal revenue and expenditure are offset or slightly surplused. However, in reality, the country often needs a lot of wealth to solve a large number of problems, and there will be a situation where the income cannot be closed and the situation is made out.
This is one of the reasons why fiscal deficits are now inevitable.
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