The peso and the Canadian dollar fall against the euro, but do not overshoot the dollar. Both Canadian and Mexican exports slowly diversify to other markets. Japan makes a determined effort to jump-start its economy with a combination of expansionary policies and a determination to restructure its banking system. Sustained government spending takes hold. Consumer spending rises on regained confidence in the future.
Confidence spreads to China.
This demonstration that the euro nations and the United States are able to agree on policies that promote growth, gradually raises long-term confidence in the euro and becomes the basis for its wider acceptance as a reserve currency. Two final questions. The answer is yes. But the U.S. Treasury has usually reflected the interests of U.S. investors, not U.S. workers. The typical American manufacturing worker would gain from an expanded role for the euro.