File - Wads of euro banknotes are stacked in a pile at the GSA Austria (Money Service Austria) company's headquarters in Vienna July 22, 2013. REUTERS/Leonhard Foeger
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FRANKFURT, Germany: Grappling with an ailing eurozone economy and stagnant prices, the European Central Bank is hoping that help will come from something it cannot control: the value of the euro.ECB President Mario Draghi has been at pains to stress that the central bank does not have an exchange rate target – eager to avoid antagonizing the United States and other big economies with "beggar-thy-neighbor" tactics.Last month, the ECB published a report exploring "an alternative path for the euro" – a fall in its value to $1.24 by 2016 that is well on the way to becoming reality.That would increase the eurozone's 8.5 trillion euro economy by up to 0.3 percent next year and in 2016, and in turn lift the bloc's price inflation, the ECB's primary benchmark of health, by up to 0.3 percent – doubling the current rate. On its own, the ECB has little hope of arresting decline.Ultimately, then, even a falling euro may not be enough to lift pressure on the ECB to embrace full-blown quantitative easing by buying government bonds.
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