Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/210803
Year of Publication: 
2013
Series/Report no.: 
CBM Working Papers No. WP/05/2013
Publisher: 
Central Bank of Malta, Valletta
Abstract: 
The objective of this paper is to enhance the understanding of inflation dynamics in Malta and investigate the underlying sources of inflation differentials with the euro area. A country that registers persistently higher inflation than its main trading partners will suffer from a deterioration in its external price competitiveness, with subsequent losses in output and employment. This is even more relevant in the context of a monetary union, where asymmetric shocks cannot be corrected by changes in monetary or exchange rate policies but rather through structural policies and relative adjustments in prices and wages.
Document Type: 
Working Paper

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