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impact on inflation, the point of view of the current literature mainly have the following views: Barro (1976) in discussing the problem of inflation, points out that once the government's growth rate of output growth rate than the stock of debt, continue to issue bonds through the form of monetization cause inflation.Smith (1982) compared the use of bonds and printing money to finance the consequences, found it hard to realize the stability of the zero rate of inflation situation.Yan Kun (2002) argue that, as a result of China's central bank can buy government bonds in the open market operations, coupled with excessive foreign exchange reserves, forming a huge monetary expansion pressure.When Treasury after reaching a certain size, government credit would be shaken, once the government through the national debt not achieve the desired effect only by the seigniorage (currency) to raise money, eventually will no doubt lead to hyperinflation.There are many scholars believe that national debt issue is not the main reason of leading to inflation.Friedman (1982) argue that, in the money supply growth rate is extremely low, small scale of national debt can be to promote growth in money supply to need levels, relieve the recession of economy, and does not result in an excess of money supply lead to inflation.Therefore, bond issuance and is a loose relationship between inflation.Darby (1984) argue that, as long as the bond issue to maintain coordination with monetary growth rate within a certain range, so even if there is a tendency of monetization outstanding debt will not cause inflation.

It is not hard to see from the above discussion, the researchers in different countries, different economic system as the research object, using different methods may be completely different conclusions.We can't simply think that bond issue will cause the money supply increase causing inflation.To find out the relationship between the national debt issuance and inflation, it is necessary to carry out the quantitative analysis, find out the number of causal relationship between them, and to make the objective evaluation.

We first have to clarify here in this paper, the causes of inflation.In economic theory, the main causes of inflation has the following kinds, there is demand pull inflation, cost-push inflation, the inflation spiral, structural inflation and inflation as a monetary phenomenon.Actually both front which theory, the final performance of inflation also must have higher prices, and rising prices is obviously due to the relative too much money on a few commodities pursuit as a result of a relatively small amount of goods, so I think that inflation is actually in terms of representation is a monetary phenomenon, and is also based on the theory of this essay.

In general, there are two main aspects of the purpose of government bond issue, the first aspect is to recycle the monetary excess liquidity on the market, the second aspect is to through the issuance of bonds to raise funds for investment to stimulate economic growth.Actually whatever purpose, national debt funds eventually recovered is to invest.

We assume that an extreme case, suppose the government before issuing Treasury bonds have been confirmed by good capital investment projects as A, in the current economic climate, A project of industry investment rate of return is 10%, and本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。