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Balance-Sheet-Policy

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Online First Journal of Money, Credit and Banking Online 23 Jun 2026
Passive Quantitative Easing: Bond Supply Effects through Lower Debt Issuance

Jens H. E. Christensen · Simon T. Hetland

The paper introduces the concept of “passive quantitative easing” (passive QE): a deliberate reduction in government debt issuance that lowers anticipated future bond supply and reduces …