Monetary policy support for government bond issuance:Empirical evidence from China's open market operations
The synergy between fiscal policy and monetary policy is conducive to forming pol-icy synergy and preventing and resolving major risks.Based on the text analysis of the Central Bank's open market business transaction announcement and the empirical test of the govern-ment bond issuance data,this paper verifies the coordination of monetary policy on government bond issuance from the perspective of treasury bond and local government bond issuance and"warehousing".The research finds that issuing treasury bond and local government bonds will significantly increase the probability of the central bank releasing liquidity through open market operations.Further,before the issuance of debt,under the requirements of the State Council and many coordination mechanisms between the Ministry of Finance and the Central Bank,the Central Bank will release liquidity in advance,creating a loose liquidity environment for the issuance of treasury bond and local government bonds;after the issuance of debt,the centralized collection and payment system of the national treasury has the functions of concentration and isolation,which leads to the withdrawal of some currencies from the market when the issuance of debt is deposited into the treasury.The open market operation of the central bank will also release liquidity accordingly,thereby smoothing out the short-term liquidity fluctuations caused by the issuance of payments.
fiscal and monetary policy coordinationnational debtlocal government bondsopen market operation
万方数据
维普
