In early 2014, the U.S. Government had more than $17 trillion in debt (approximately $55,000 for every citizen in the US) outstanding in the form of Treasury bills, notes, and bonds. From time to time, the US Treasury changes the mix of securities that it issues to finance government debt, issuing more bills than bonds or vice versa.

With short-term interest rates near 0 percent in early 2014, suppose the Treasury decided to replace maturing notes and bonds by issuing new Treasury bills, thus shortening the average maturity of US debt outstanding. Discuss in detail both the pros and cons of this strategy. Provide a reference(s) for your posting(s).