Europe’s rescue plan will hurt the euro: The euro weakness makes sense given the continent’s economic struggles. Growth has been virtually nonexistent and unemployment is stuck near record highs.
Things have gotten so bad in the eurozone that consumer prices fell in December, marking the first bout of deflation since the Great Recession.
Now the European Central Bank is poised to launch a new stimulus program. While that program could boost the economy, it’s also likely to depress the euro’s value further, at least initially.
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