The continued depreciation of the euro exchange rate points to much-needed increases in export growth and imported inflation in the coming months. But this does not eliminate the risk of deflation and the ECB will remain under pressure to implement full-blown quantitative easing. Indeed, as QE is already at least partly priced in, failure to act could lead the currency to reverse some of its decline.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services