Europe and the Future of Italy — Plan A and Plan B

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Warren Mosler argues that Italy (and other countries of the EU) should stay in the EU but lobby for larger fiscal leeway, effectively restoring the ability of government to enact counter-cyclical economic policies and reversing the main intent of the Maastricht treaty. At the same time, Italy should be prepared to introduce a dual currency regime, such that its citizens are free to keep the Euro as they have and use a new Lira issued by the Italian government in its renewed capacity as the country's sovereign currency issuer. If Brussels tuns a cold shoulder to Italy's demands for larger fiscal space, it  can wield the stick of a regime of parallel currencies,

I do not fully grasp how the duplex currency system can work successfully - but watch with me Warren Mosler explaining it to us: