Abstract: The buying and selling of government bonds by the central bank have many benefits, such as addressing the inversion of growth rates, adjusting government debt structure, and promoting financial structural adjustment. Therefore, it is necessary to reassess the financial function of fiscal policy. First, from the perspective of the relationship between fiscal policy and currency, the central bank's purchase and sale of government bonds help to better leverage the role of fiscal policy in the monetary policy transmission mechanism. To lift operational restrictions in the primary and secondary markets, ideological liberation is necessary, otherwise, it will be difficult to achieve synergy between fiscal and finance. Second, from the perspective of the relationship between fiscal policy and capital market, the central bank's purchase and sale of government bonds contribute to the development of capital markets and the improvement of capital market infrastructure. The risk-free assets provided by public finance serve as the pricing benchmark for the capital market, and the yield curve of government bonds is an important part of the capital market infrastructure. Currently, the structure of social financing in China is reversed, and the central bank's buying and selling of government bonds provide an opportunity to adjust the structure. Third, the central bank's purchase and sale of government bonds helps to promote the integration of fiscal policy and monetary policy. In the new landscape, it is necessary to adjust the relationship between public finance and the central bank, strengthen the coordination between fiscal and monetary policies, and promote a more reasonable financial structure that is better suited to the needs of reducing uncertainty at the new stage.
