In 2023, an article in the Wall Street Journal contained the following observation: The European Central Bank tried to chart a different path from the Fed early last year, signaling it would hold rates low as the Fed raised them aggressively. But after the euro slid against the dollar, ECB officials quickly reversed course over fears of imported inflation.

a. Why would the fact that the European Central Bank kept interest rates lower than U.S. interest rates cause the value of the euro to decline versus the dollar?

b. Why might a lower value for the euro versus the dollar lead to euro zone countries (the countries that use the euro as their currency) “importing” inflation?