Euro discount is Europe’s savior

Avatar of Nick John By Nick John Dec23,2023 #discount #Euro #Europe
Euro discount is Europe's savior 2
Euro discount is Europe's savior 2

According to economic experts, the European Central Bank’s (ECB) quantitative easing (QE) program will increase 2015 inflation in the eurozone by 0.3%, mainly due to the weaker euro.

ECB President Mario Draghi launched an easing program worth $1,100 billion in the hope of saving the economy from recession and deflation.

The Euro has continuously lost value against other currencies in recent months.

In addition to promoting inflation, a weak domestic currency also brings a competitive advantage to the export sector.

Yesterday, one euro could only be exchanged for nearly 1.05 USD, the weakest since January 2003.

Last week, Goldman Sachs bank predicted that in the next 6 months, the euro will be at par with the USD.

`As the recovery accelerates, core inflation will rise significantly due to the weak euro,` said economist Christopher Matthies.

However, Draghi still has to make a lot of effort to turn this into tangible economic benefits.

However, not everyone thinks Draghi will succeed.

Ignazio Visco – Governor of the Bank of Italy said that the current question is whether the euro is devaluing too quickly compared to expectations.

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