The Analysis Of Macroeconomic Effects Of China's Treasury Bonds

Economists pay more attention to Treasury Bonds which is the important measure used in Chinese fiscal policy. Especially, the effects of Treasury Bonds in the macroeconomic operation have become the central issue that caused the intensive discuss between the economists. Treasury Bonds is a financial measure that bases on the state credit and pools the fiscal capital for the government, which affects the macroeconomic operation greatly by several actions, such as the governmental investment, the governmental taxation and payment, and the buying and selling in financial market.This paper study the positive and negative macroeconomic effects of China's Treasury Bonds .The positive macroeconomic effects of China's Treasury Bonds include the economic effects of investment of Treasury Bonds, the effects of expanding monetary supply of Treasury Bonds, the liquidity effects of Treasury Bonds, and the interest effects of Treasury Bonds, which can improve the level of the gross output of the whole economy, can balance the intensive fluctuation of the economy, can optimize the industry structure, can put forward the growth of economy, can accelerate the development of the market, and can build a steady interest circumstance for the operation of China's economy. The negative macroeconomic effects of China's Treasury Bonds include the negative effects of Treasury Bonds and the effects of crowding out of Treasury Bonds, which can worsen the fiscal risk, can damage the equilibrium of the macroeconomic operation, can decrease the gross output made by the positive macroeconomic effects of Treasury Bonds, and can degrade the efficiency of the macroeconomic operation. Comprehensively, the gross macroeconomic effects of Treasury Bonds is positive. So, Chinese government can achieve its aim by taking advantage of the positive macroeconomic effects of Treasury Bonds flexibly and making great efforts to avoid the negative macroeconomic effects ofTreasury Bonds.