A survey of anti-inflation policies in Malta : 1983-2003

Abstract

The aim of this research is to examine: 1. What inflation really is 2. If there are any costs to inflation 3. What economic policies can be adopted to control inflation 4. If there is any real trade-off between inflation and unemployment as defined by the Phillips Curve Moreover, it seeks to establish whether the economic policies to control inflation introduced by various administrations such as the wage freeze introduced in 1982 and ended in 1986 and the value added tax which was introduced in 1995 and again in 1998 had any effects on the population as regards: 1. The lowest paid section of the population 2. The social perspective as regards to income deterioration The contribution this research will give is to see whether one economic policy is better than the other regarding the individual's disposable income. Furthermore this research tries to explain how the evils of inflation have hit the Maltese worker and his family and how he fared financially. From this research we can conclude that from the two policies, which have been analysed, one can have more soothing effects than the other, but there is no one theory that has the ability to slow down or even eradicate inflation.