How does political polarization influence economic policies in Western democracies?

Political polarization in Western democracies makes it increasingly difficult to implement long-term economic policies. At the AIM Summit Dubai, Kevin McCarthy discussed how divided governments struggle to pass fiscal policies that prevent excessive debt accumulation. This situation contributes to global economy and financial volatility, making economies behave more like emerging markets. Experts at the summit called for cross-party collaboration initiatives to ensure stability and prevent worsening economic conditions.

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