Political conflicts can significantly affect economic policies by creating uncertainty and instability within governance structures. During intense conflicts, governments may prioritize short-term survival over long-term economic planning, leading to volatile markets and poor investment climates. Additionally, such conflicts can cause shifts in fiscal policies, as leaders may resort to populist measures to garner support. This can undermine economic growth and affect public trust in economic institutions. Ultimately, political instability often influences goals, creating barriers to effective economic management and potential recovery.