While the ECB’s response signals an eagerness to cope with the unique challenges the euro area faces, it suffers from a fundamental flaw in its approach to crisis management: it seeks to stem an insolvency crisis by means of expanded liquidity. This is the same misreading of the situation that (i) amplified the euro crisis during the previous ~10 years, and (ii) forced the ECB to engage in de facto fiscal policy that evidently fails in its stated end of boosting inflation to the desired levels. More QE means more of the same package of measures that has clearly failed to boost aggregate demand and put inflation rates in line with the ECB target.