Although there are some signs that this effect is weakening, the share of imports from low-cost countries in the euro area has continued to increase. A number of other challenges can be mentioned. Globalisation is associated with possibly epochal changes of demand and supply, the structural part of which is difficult to assess.
The progressive completion of global financial integration has created a set of sophisticated networks that link the fortunes of markets, asset classes and financial institutions around the world. We, in the Eurosystem, are very closely monitoring the ongoing significant market correction we have experienced since the middle of last year, taking into account all their possible consequences including on inflation.