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How does political polarization affect economic policy in democracies like the U.S.?

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Political polarization often results in legislative gridlock, delayed budgets, and inconsistent fiscal policy. According to Kevin McCarthy at AIM Summit, this dysfunction undermines investor confidence and makes it difficult to address sovereign debt or support emerging markets effectively. https://www.gulfanalytica.com/key-insights-from-kevin-mccarthy-on-global-sovereign-debt-political-polarization-and-emerging-market-trends-at-aim-summit-dubai

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