The European Central Bank's headquarters (ECB) is pictured in Frankfurt/Main, Germany, on January 22, 2015. AFP PHOTO / DANIEL ROLAND
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ECB chief Mario Draghi's 1 trillion euros of fresh money could prove the masterstroke that saves the eurozone for now, but it breaks the principle that the bloc acts as one, a move that could ultimately undermine the currency he is trying to save.In monthly 60 billion-euro installments from March, the European Central Bank will buy chiefly government debt at least until September of next year, or as long as is needed to revive inflation, which recently swung into reverse. An internal ECB study two weeks ago suggested that 500 billion euros of quantitative easing, or money printing, would yield an increase in inflation of 0.2 to 0.4 percentage points, a source familiar with the deliberation said.Europe's leaders, from Italian Prime Minister Matteo Renzi to France's Francois Hollande were quick to welcome the ECB's move. They promised to continue delivering economic reforms, something Draghi has said is vital for money printing to work. Chancellor Angela Merkel reiterated her warning that money printing by the ECB should not result in countries putting off urgent reforms.
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