BIS Review 54/2004  3  However, as I have already mentioned, Germany has set the ball in motion in this area - and that is no small feat. The labour market has undoubtedly become more flexible of late both with respect to the institutional framework and as regards collective wage bargaining and working hours.
Establishing close cooperation with supervisors ensures that synergies between these central bank and supervisory activities can be exploited. In addition, close cooperation enhances the efficiency of the supervisory system by reducing overlaps of work. In fact, one lesson from the current crisis is the need for a close interaction between micro- and macroprudential analysis.