For the eurozone, this is not the 2010/2012 crisis all over again. It is far worse. The coronavirus will prove to be an economic shock, a corporate solvency crisis and a political crisis all folded in to one.

The good news is that it will probably not become a sovereign debt crisis. The European Central Bank (ECB) last week did the right thing and has reduced that probability. Its pandemic emergency purchase programme will help governments raise money for health care and a first set of economic measures. What it will not, and cannot on its own, address is the wider macroeconomic effect of coronavirus. That will require a different set of tools.

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