Actually tame inflation here and increasing inflation in Europe would correlate precisely with a lower dollar and a higher Euro. The relationship is direct and not inverse between values of denomination and inflation.
That is incorrect. If $1 buys a big mac here today. It buys 1 Euro buys a big mac in europe. In 5 years if $1 still buys a big mac and and takes 2 euros to buy a big mac, the Euros value is now worth half of what the dollar is.
No, that can’t be the case, at least if the purchasing power parity model of currency valuation holds.
Regardless of whether this is the case, either lower interest rates are bad for the dollar, or lower inflation is bad for the dollar, but both can’t be true as the article suggests.