Kamikaze

The ECB’s new measures signal resolve, and that Mr Draghi is still intent on, as he promised back in 2012, doing to save the €. But increasingly, markets are doubting the efficacy of overstretched monetary policy. Foreign-exchange traders responded to the measures by first marking the euro down against the dollar and then up as the impact of Mr Draghi’s words on not lowering interest rates further sank in. Since one of the main ways in which QE has helped the euro-zone economy is through a weak currency, that does not bode well for the success of the ECB’s latest venture. LINK

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