Folkerts-Landau on If Italy Should Be Outside Euro Zone

The transcript discusses the challenges Italy faces in joining an IMF program and the potential for European solutions. It highlights the economic disparities between Italy and Germany due to their shared currency, the euro, and the historical revaluation of the German mark against the Italian lira. The discussion emphasizes the need for Italy to implement significant structural reforms to avoid ongoing economic crises, particularly within the Eurozone.

Discuss the significance of Germany's economic policies in relation to Italy's economy.

What are the potential outcomes for Italy if it remains in the eurozone without reforms?