The reasons for reducing national debt due to overheating are as follows: when the economy is overheated, the currency circulation in the market is reduced through open market operations, and the main purpose of issuing national debt is to raise funds needed for economic development and management and make up for the shortage of fiscal revenue. Paying back the future money in borrowing money now is equivalent to spending the future money, so reducing the issuance of government bonds can make the government have no money to spend, which can curb the overheating of the economy to a certain extent. In addition, when the economy is overheated, we can also raise interest rates and recycle the currency in circulation in the market.

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Reply time: 2022-0 1-26. Please refer to the latest business changes announced by Ping An Bank in official website.