Liberal Democrat leader Nick Clegg has accused the Tories of leading a "protection racket" as they try to frighten voters into electing a Conservative government.
Their warnings about the threat to the markets of a hung parliament demonstrated their desperation that victory at the general election was slipping from their grasp, he said.
In his keynote speech to the Lib Dems' final conference before the election, expected on May 6, Mr Clegg accused the Tory leadership of being irresponsible with financial stability.
David Cameron, shadow chancellor George Osborne and shadow business secretary Ken Clarke have suggested there could be a crisis of confidence in sterling if they do not win a clear mandate for swift action to cut the deficit.
Mr Clegg said today: "David Cameron, George Osborne and Ken Clarke marched into the City of London the other day and declared that if voters didn't give them the result they want, the markets would tear the house down.
"Cynical, desperate, the Tories think they're entitled to victory - the moment they feel it slipping from their grasp, they start lashing out.
"It's a political version of the protection racket - do what we want, or else."
His comments came as he distanced himself from the prospect of joining a coalition government with the Tories if there is no overall control after the election.
The Lib Dems' spring conference in Birmingham this weekend has been characterised by the hostility of delegates to the prospect of a deal with the Conservatives.
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