The notorious 'deflation threat' is also mentioned, of course. Economists with shallow understanding of the matter keep fretting about the 'deflation spiral'. What a nonsense.
The real deflation looks as follows. The dangerous variety of deflation is the credit contraction, and it has been in place in the Euro Area since January 2009:
Well. The much-feared disinflation or deflation is nothing but a consequence of the above outlined credit deflation. If the volume of credit shrinks, so do prices. Can Draghi and Merkel come to help?
Not really. The Euro Area has been burdened with excess credit. This is the core reason of the European malaise. No monetary policy can alleviate that burden, no fiscal policy either. I'm very sorry, but the Euro Area is about to suffer from a prolonged economic stagnation.