In this paper, after controlling for the level of R&D expenditures, I find that profitability of R&D intensive firms is more important for subsequent returns than the R&D intensity (measured with R&D-to-market value or R&D-to-assets) and past performance. In a sample of firms where I am able to...

We estimate the impact of the fiscal expansion in response to the COVID-19 outbreak on the Slovene economy via a twofold approach. First, we simulate fiscal shocks in a three-scenario setup using a calibrated large-scale DSGE model. Second, we employ a small-scale VAR model to check the...

The ECB’s price stability mandate has been defined by the Treaty. But the Treaty has not spelled out what price stability precisely means. To make the mandate operational, the Governing Council has provided a quantitative definition in 1998 and a clarification in 2003. The landscape has...

This paper summarises the findings of the Eurosystem’s Expert Group on Inflation Expectations (EGIE), which was one of the 13 work streams conducting analysis that fed into the ECB’s monetary policy strategy review. The EGIE was tasked with (i) reviewing the nature and behaviour of inflation...