A political party might intentionally trigger a government shutdown not to win policy concessions, but to create a public narrative of a dysfunctional opposition. The true victory isn't legislative but reputational, aiming to sway voters in upcoming elections by making the ruling party look incompetent.

A strategic reason for a leader to resign is to de-escalate public tension. After a crisis, the leader can become a symbol of that difficult period. By stepping down, they absorb the negative sentiment, lower the political temperature, and allow their organization to move forward.

The appeal of a populist leader lies in their rejection of traditional political norms. When the electorate feels betrayed by the established "political class," they gravitate toward figures whose rhetoric is a deliberate and stark contrast, signaling they are an outsider.

Despite Javier Milei's iconoclastic image, his economic program is run by a highly respected, conventional team of technocrats, many from the previous reformist administration. This creates a separation between his "Trumpy" political style and the orthodox, IMF-style stabilization policies being implemented.

Facing deep economic stagnation, German Chancellor Friedrich Merz’s coalition has outsourced key reforms to commissions. This strategy allows them to publicly acknowledge problems like pension and welfare system unsustainability while deferring politically difficult decisions, revealing a lack of consensus for immediate, disruptive change.

Seemingly irrational political decisions can be understood by applying a simple filter: politicians will say or do whatever they believe is necessary to get reelected. This framework decodes behavior better than assuming action is based on principle or for the public good.

Viewing politicians as athletes in a game reveals their true motivation: gaining and retaining power. This framework explains seemingly inconsistent actions, like flip-flopping, as strategic plays for short-term public sentiment rather than reflections of moral conviction or long-term vision.

While Italy has historically been a focus for political risk, the current stable government has reduced near-term concerns. The primary political risk now centers on France, where noise around the early 2027 presidential election is expected to pressure French government bond spreads in late 2026.

The Takaichi government has a political incentive to support the Bank of Japan's monetary normalization. Allowing inflation and yen depreciation to continue unchecked could undermine consumer confidence and her high approval ratings. Therefore, a gradual BOJ rate hike could be seen as a politically astute move to maintain stability and popular support.