How does the Government try to control the economy by issuing more bond?

Answer 1

This is about the government deficit. The "Keynesian" theory is that when the government increases its budget deficit, other things being equal the economy will grow faster.... or if there is a recession, will pull out of recession sooner. Governments issue bonds to finance their budget deficit.

Answer 2

It is more a control of debt and a funding of pension plans by issuing bonds. In local governments, issuing bonds pays for roads, sidewalk, school, fire department and other improvements.