Countries with different political and monetary institutions have varying levels of public deficits, debts, and inflation. The durability of governments plays a crucial role in addressing these economic challenges. Short-term governments tend to avoid tough decisions, especially in countries with many small political parties. However, central bank independence can help maintain low inflation without harming the economy. The study suggests that political factors have a significant impact on financial policies, which can be useful for countries dealing with high debts or inflation issues.