The Neglected Fluidity Control Tool: Short-term National Debt

In this article, we first analyze the process of the fluidity control of short-term national debt and think that the short-term national debt market with certain scale can reduce the impact of fluidity to commercial banks, then compare three tools usually used in open market operations, i.e. middle and long term national debt, central bank bill and short-term national debt and the results show that the control ability of fluidity of short-term national debt is better than middle and long term national debt and central bank bill. However, the finance function of short-term national debt has ignored in China for a long time, which induces the actuality that the scale of short-term national debt is too small, and this actuality has produced a series of restriction effects to the control of fluidity. Therefore, we advice that relative departments should emphasize the finance function of short-term national debt, perfect the issuance system of short-term debt, and fully exert the control function of short-term national debt.