Financial markets significantly influence political stability by dictating economic conditions that can lead to social unrest or cohesion. A healthy financial market can promote job creation, increase consumer confidence, and enhance governmental legitimacy. Conversely, financial turmoil, such as market crashes or high inflation, can lead to public discontent, protests, or demands for political change. Investors and businesses often seek political stability to protect their investments, which further ties the health of financial markets to the political landscape, creating a feedback loop that impacts both spheres.