1. Issuing treasury bonds is an expansionary fiscal policy, which is also called loose fiscal policy. By issuing treasury bonds, the state increases fiscal expenditure and reduces taxes, so as to stimulate the growth of total demand, reduce unemployment rate and make the economy recover as soon as possible. This is called expansionary fiscal policy.

2. As government expenditure directly constitutes a part of the total social demand, the increase of the scale of government expenditure will inevitably increase the total social demand accordingly. In the case of asymmetric income increase and expenditure expansion, there will be a fiscal deficit. In this sense, expansionary fiscal policy is also deficit fiscal policy.

3. The purpose of issuing government bonds is to absorb the people's surplus funds and then invest them in the construction of the country, which can be understood as "the state borrows money from the people for construction". Its fundamental purpose is that people can do more important things. If the people have no money, how can they invest in government bonds? After the infrastructure is better, the economic development and construction will be better, which is a virtuous cycle and a process of expanding assets, so it is regarded as an easing policy.

I. National debt

National debt is a creditor-debtor relationship formed by raising funds from the society in accordance with the principle of debt. It is a bond issued by the government to raise funds, and it promises to pay interest within a certain period of time and repay the principal at maturity. Because the issuer of national debt is a country with the highest credit, it is recognized as the safest investment tool.

Second, the method of issuing treasury bonds

1. Targeted sales: Targeted sales refer to the way that the state issues treasury bonds to some specific institutions, generally to pension funds, unemployment insurance funds and financial institutions;

2. Underwriting: Underwriting refers to the way in which the underwriting syndicate signs an underwriting agreement with the Ministry of Finance, determines the issuance conditions, underwriting fees and underwriters' obligations, and issues bonds according to market rules;

3. Issuance by tender and auction: It refers to determining the underwriters and issuance conditions of national debt by means of tender and auction according to different issuers.

3. Issuance method of national debt:

1. Public offering method.

that is, issuing government bonds through public bidding in the financial market. According to the subject matter of the tender, the public tender for the issuance of treasury bonds is divided into three forms: payment period, price and rate of return.

2. Bearing method.

that is, financial institutions underwrite all the national debt and then turn to social sales, and the unsold part is borne by the financial institutions themselves.

3. Selling method.

that is, the government entrusts a marketing agency to use the financial market to directly sell government bonds.

4. Payment and issuance method.

that is, the government should pay cash instead of treasury bonds.

5. Compulsory apportionment method.

It means that the state uses political power to force its citizens to buy government bonds.