The Danish state believes that the nation can avoid economic collapse if the state pays private sector workers' salaries. This, it is thought, will allow private companies to avoid layoffs. But there's a downside.
Over the years a chorus of critics has alleged that the textbook view of how a central banks buys government debt in "open market operations" is backwards. They argue that in reality commercial banks take the lead in making loans without regard to their reserves.
There is a reason to panic. But the panic should be over how governments—who know so very little about the virus that they have decided warrants destroying the global economy—will create many new threats to health and well-being through their policies.