A speculative attack on the currency of a country is the focus of Stage Two of a financial crisis in an emerging market economy.

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A speculative attack on the currency can trigger a financial crisis in an emerging market economy. This happens when investors and traders doubt the stability of the country's currency and begin to sell off their holdings, causing the value of the currency to plummet. This leads to a vicious cycle of currency depreciation, capital flight, and rising interest rates, which can severely impact the economy and financial system of the country.

A Speculative Attack on the Currency of a Country Is