Among the largest four euro area countries, Italy ranks the lowest, and its level of R&D intensity has increased marginally since 1996. 1 At the other end of the spectrum, China more than doubled its investment in R&D over the same period. The role of human capital Together with R&D, the economy’s ability to innovate crucially depends on human capital.
With inflation expectations stable, and with levels of resource utilization expected to remain low, inflation is likely to be subdued for some time. Monetary policy Although it is likely that economic growth will pick up this year and that the unemployment rate will decline somewhat, progress toward the Federal Reserve’s statutory objectives of maximum employment and stable prices is expected to remain slow.