They have injected extra liquidity, lengthened the maturity of their lending facilities, and (in the case of the Fed) expanded the list of counterparties and widened the range of acceptable collateral in their operations. These actions have contributed to a significant improvement in money market conditions since late December in the euro area, the UK and the US.
Just a few days ago the IMF once again called on European governments to tackle structural problems on the labor market through, in its words, “a consistent and coherent set of labor market reforms.” These problems “head the list of remaining structural priorities.” Especially in Germany, the issues involved are - among others •  the degree of job security  •  the type, amount and duration of unemployment benefits  •  the wage formation process and wage differentiation  •  the amount of non-wage labor costs and, by extension, social security reform.