While that might be an extreme case, a valuable lesson in history is that it is critical to ensure the stability of the financial system in preventing a vicious circle between the economy and prices.
In addition, measures to increase the profitability of investment would incentivise firms to capitalise on low interest rates and replace underutilised and obsolete capital as well as to invest in R&D and intangible capital. This is particularly acute in certain euro area countries where there has been a precipitous decline on the net return of capital.