The Maltese economy : a macroeconomic analysis

Abstract

This book gives a general overview of the Maltese economy and describes the magnitude of change of some of its most important macroeconomic varieties. The reader does not require knowledge of economic theory to follow the text, since the contents are essentially descriptive in nature. Throughout the book, however, reference is made to macroeconomic theory, so as to introduce the reader to well-known macroeconomic principles related to the subjects treated. The book is divided into five parts. Parts One and Two deal with the major economic aggregates relating to output, expenditures and human resources. Part Three covers money, banking and inflation, while Part Four deals with international economic aspects. Part Five describes the Maltese multiplier process and gives and account of the pattern of change of the Maltese economy since 1960. Although there are some cross-references between one part and another and between one chapter and another, individual chapters are more or less self-contained, and can be read in any order. At the end of the chapters one finds lists of publications related to the topics of the individual chapters. The references are mainly intended to guide the reader as to what literature about the Maltese economy is available. Most of the publications are found at the library of the University of Malta. In some cases the same publication is referred to in more than one chapter due to the fact that the publication in question covers more than one topic. The book is principally intended for students preparing for Ordinary and Advanced level examinations, for first-year undergraduates, and for those preparing for professional examinations in accountancy, management, banking and related subjects. It should also prove interesting to the general :reader, as the language used is not technical, and the text is accompanied by diagrams to give a visual picture of most of the statistical data presented. The idea for writing this book occurred to me while giving a course of lectures to undergraduate students from the Faculty of Education at the University of Malta. I realised that these students had every opportunity, in terms of availability of text books, to familiarise themselves with the British or American economies, but not with the Maltese Economy, and that, as a result, future teachers of economics were net being encouraged enough to see the relevance of macroeconomic theory to Malta. During the preparation of this book, I sought and was generously given, help from a number of colleagues and students, too numerous to mention. In particular I would like to thank Sandro Aquilina and Joe Farrugia, two ex-students of mine and my daughter Marie, who helped in the proof reading and suggested improvements to the original text. I would also like to acknowledge the valid suggestions made by John A Consiglio with respect to the chapters on money and banking and by John C Grech with respect to the chapter on the European Community. A work of this nature must necessarily draw on various previously published sources. Of special mention in this respect are the publications of the Central Bank of Malta which I have extensively used in the sections on the institutional and historical aspects of money and banking.