However, the index forecast for 2008 and 2009, based on the December Eurosystem macro-economic projections, seems to indicate that the degree of vulnerability would tend towards its average level. Still, it remains to be seen how profitability in 2008 will be affected adversely by further valuation losses, increased funding costs, slowing credit growths, declining non-interest income.
*  *  *  John Taylor has discussed a number of challenges to monetary policy-making in an era of globalisation. In my remarks, I will focus on the implications of globalisation specifically for monetary policy-making in the euro area. 1 Globalisation may change the environment for monetary policy-making We all agree that globalisation offers great opportunities.