A: Lending money to the government by the central bank will lead to serious inflation, and the inflation rate reached 24% in the early 199s.

The government only has administrative control over tax revenue. If the total tax revenue in that year is not enough to pay for financial and large-scale projects and military expenditures, the future tax revenue will be used as a guarantee, and borrowing money from the society is to issue government bonds. The central bank is only the contractor of government bonds. After charging the government a handling fee, it will help the government distribute government bonds, and the buyers of government bonds will be funds. The central bank cannot lend money directly to the government because it wants government officials to live within their means to ensure financial stability and the preservation of the renminbi.