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  "documentTitle": "What if the US dollar loses its status as the world’s reserve currency?",
  "authorId": "RolandBerger",
  "authorName": "Roland Berger",
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  "notes": "Includes a map of Eurozone credit ratings and a dot plot of 10-year government bond yields.",
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      "text": "In the absence of fiscal unity, the euro will remain vulnerable to imbalances caused by asymmetric shocks; the wide range of sovereign bond yields underscores this issue.",
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      "text": "Yields on 10-yr government bonds across the eurozone [%]",
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      "text": "Eurozone countries S&P credit rating 2022",
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      "text": "With the formation of the eurozone, many leaders in Europe hoped to create a global counterweight to the dollar as the world's reserve currency. In fact, the euro is also the second most important currency globally. Nevertheless, in all relevant statistics, the euro is far from being a true global alternative to the dollar - it is only slightly more relevant today than the Deutsche Mark was at its time. There are several reasons for this. First, the euro area is a fragile monetary union compared with the US - and not even a fiscal union. The continuous European debt crisis presents steady proof that a monetary union without a fiscal union is limited in its function. In the absence of fiscal unity, the euro will remain vulnerable to imbalances caused by asymmetric shocks; the wide range of sovereign bond yields underscores this issue. In addition, the presumably only European AAA country potentially able to provide the world with safe collateral (German Bunds) has stuck to austerity for decades.",
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      "text": "Source: Capital IQ; S&P",
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      "kind": "title",
      "text": "Past hopes that the euro might become an alternative to the dollar as the world's reserve currency are not likely to materialize for several reasons",
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