["Journal of Money, Credit and Banking, EarlyView. ", "\nAbstract\nThis paper argues that lower government debt issuance is equivalent to a central bank–operated asset purchase program, commonly known as quantitative easing (QE), as both reduce anticipated future bond supply. However, as it involves neither asset purchases nor associated reserves creation, it is labeled passive QE. A novel classification scheme of central bank balance sheet policies ranks passive QE as stimulative. Supportive evidence from a temporary lowering of government debt issuance in Denmark suggests that declines in long‐term yields reflected both reduced term premia, consistent with supply‐induced portfolio balance effects, and increased safety premia, consistent with safe assets scarcity effects."]