Should Europe Do ‘Fiscal QE'? In our latest Bloomberg Economics piece available @TheTerminal we look at what would happen if European debt management offices shifted issuance toward T-bills — following the path taken by the US Treasury. Our estimates: up to €55bn in debt-servicing cost savings over the next five years. But the indirect effects could be even more interesting: (i) a liquidity injection of 'quasi-money' as the ECB’s QT drains reserves; (ii) less duration supply on the long-end of the curve, lowering term premia and easing financing conditions; and, (iii) a deeper collateral pool supporting the euro’s international role. The costs? Higher refinancing risk and greater exposure to inflation shocks — but potentially stronger fiscal discipline.