Stage Two of a financial crisis in an emerging market economy usually involves a ________ crisis.

Name: Stage Two of a financial crisis in an emerging market economy usually involves a ________ crisis.
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In Stage Two of a financial crisis in an emerging market economy, a currency crisis usually occurs. This is because investors and foreign entities lose confidence in the stability of the country's currency, leading to a sharp depreciation and potentially causing further economic turmoil.

Stage Two of a Financial Crisis in an Emerging Market