Central banks and investors do not buy currencies per se but assets, so the euro is not a viable reserve alternative because the eurozone has no single safe instrument equivalent to the U.S. Treasury market—only fragmented German, Greek, and Spanish bonds that are very different—and China's non-convertible currency cannot serve either, which sustains the dollar's reserve role until a credible alternative crystallizes.

causalpending

Speaker

Carmen Reinhart

Evidence Quote

we need for that alternative to crystallize itself

Source

Carmen Reinhart on Financial Crises 11/23/2009EconTalk
Created: 6/15/2026, 9:20:19 AM

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