This book reviews the implementation of macroeconomic policies in Malta, identifying the key issues, lessons learnt and best practices which could be adapted by other small states. It also sets out the country’s challenges for the future, including attending to the conflicting demands of environmental conservation and economic development.

Preface The Country Profile Introduction 1. Fiscal Policy Framework Part I – Key Issues and Lessons Learnt 2. Economy of Malta 2.1 The Productive Sector 2.2 Government Revenue and Expenditure 2.3 Budget Surplus and Deficit 2.4 Public Debt 2.5 Economic Growth 2.6 Public Involvement in the Productive Sector 2.7 Economic Vulnerability Part II Fiscal Policy Strategies in Small States 3. Economic Liberalisation and Privatisation Programme 3.1 Measures to Address Budget Deficit 3.2 Business Environment in Malta 3.3 Effect of Regional and International Agreements on Fiscal Policy 3.4 The Factors that Reduce the Fiscal Size in the Country 4. The Socio-Economic Context 4.1 Socio-Economic Development 4.2 EU Membership 4.3 Measures to Address Climate Change 4.4 Key Development Indicators Monetary Policy Framework Part I - Key Issues And Lessons Learnt 5. Introductory Remarks 5.1 Transparency of Monetary and Financial Policies 5.2 The Financial System of Malta 5.3 The External Reserves 5.4 Inflation Part II - Monetary Policy Strategies, Targets, Instruments, Transmission Mechanism, For Addressing The Most Common Shocks Facing The Small States 6. Independence And Transparency Of The Institution 6.1 Supervision Of Credit And Financial Institution 6.2 Transparency In Monetary Policy Operations 6.3 Exchange Rate Policy 6.4 Interest Rates 6.5 Exchange Control 6.6 Relationship with other International Institutions Part III- Country Case Studies 7. Malta’s Deteriorating External Competitiveness 7.1 Depositor Compensation Scheme 8. Conclusion