| Will quantitative easing by the European Central Bank succeed? Here’s a tip: watch the euro. Although Mario Draghi, president, denied it was a target, the weakening currency could prove the most effective channel through which QE reaches the real economy.
A lower euro will boost exports and, crucially, lift inflation. If it looks as if the ECB has increased the hostility of a global currency war, there is a good reason: it has. Like the Bank of Japan, the ECB is implicitly using an important reserve currency as a policy weapon...............................................Full Article: Source
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