2/3  BIS central bankers' speeches  This is especially the case in the euro area, which consists of 19 member states, all having separate fiscal and political cycles. The challenges in the domain of governments and fiscal authorities are both long- and short-run in nature. Good examples of long-run structural issues are competitiveness and global warming.
For example, the new version of the SIGMA model – a dynamic stochastic general equilibrium (DSGE) model used at the Federal Reserve Board for policy simulations – adopts a framework in which the desired markup of producers varies directly with market share; because high-cost producers have a low market share, they desire to set a relatively low markup.