Italy under EMU and the Growth and Stability Pact a ) Explain why it would be beneficial for Italy to be a member of a monetary union with Germany. What ould the disadvantages be? Italy is a member of the European Monetary Union (EMU), so it does not hav e a currency of its own. b) If Italy is in a recession, w hat policy tools are available to bring the economy back to full employment? Describe this policy in the AA/DD framework. In addition, Italy has to comply with the conditions of the Growth
