At the next European Central Bank ((ECB)) policy meeting in September, it is expected to gently lower interest rates to ease the burden on a stagnant eurozone economy. However, previous long-term Quantitative Easing ((QE)) measures, along with a prolonged period of historically low interest rates, call into question the future ability of the ECB's toolkit to reinvigorate inflation to its 2% target and defend against future shocks. This creates fears of structural issues within the ECB and the eurozone.
Background to Eurozone stimulus
To stave off a Japan-style currency deflation during the eurozone Crisis, the