Paul De Grauwe, an economist at the London School of Economics, wrote in the Economist that the quantitative easing policies of the European Central Bank "will contribute to a further weakening of the euro vis-à-vis other currencies such as the dollar, the pound and the yuan, thereby increasing exports and boosting inflation."
a. What does De Grauwe mean by "a weakening of the euro"?
b. What is quantitative easing, and why should it lead to a weakening of the euro?
c. If you ran a business in France that exports to the United States and Japan, would this development help you? If you were a consumer in France, would this development help you? Briefly explain.