Source: OECD, Economic Outlook. It is important to underline that the frequency of discretionary fiscal measures is low and far below the frequency of monetary-policy changes in countries with other monetary regimes. The government does not meet every two weeks to consider an adjustment to e.g. the VAT rate following the latest business-cycle information.
Moreover, with the rise of so-called club deals, in which private equity funds pool their capital, even very large corporations - replete with large excess-cash positions - are potential targets. The bottom line is greater pressure on business executives to maximize shareholder value.