The euro zone must seize the chance to take advantage the euro’s reserve currency role

There are now clear signs of decline in the dollar’s reserve currency role: the dollar has depreciated against all currencies; lower capital flows are entering the United States. If the euro zone is able to provide global investors with a sufficiently large single debt issue , the euro’s reserve currency role could increase sharply, benefiting from the decline in the dollar’s role. T he euro zone could then take advantage of the euro’s reserve currency role, which it is not doing at present, by shifting to a model of external debt-driven investment at very low interest rates.