The Emerging Markets Podcast by Tellimer From Crisis to Creditor: Fiscal Dominance and the New EM Debt Playbook
6 snips
Nov 26, 2025 
Eric Fine, Head of Active Emerging Market Debt at VanEck, shares his 25-year journey navigating the complex world of emerging markets. He discusses how EMs have grown more resilient against shocks compared to developed markets facing increased volatility. Fine elaborates on fiscal dominance, the evolution of local-currency markets, and the implications of rising CNY usage in global reserves. He also warns about overcrowded trades in frontier markets, explores the interplay of gold purchases and currency effects, and predicts a shared future for the dollar's reserve status.
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Vacations No Longer Ruined By EM Crises
- Eric Fine recalls earlier career summers ruined by EM crises and now being able to take vacations on his terms.
- He uses this change to illustrate how EM vulnerability to global shocks has lessened over decades.
Fiscal Dominance Shifts To Developed Markets
- Fiscal dominance means high government debt forces central banks to forgo inflation control and monetize debt.
- Eric Fine argues developed markets now show fiscal dominance more than many EMs, changing asset dynamics.
EM Credibility Built By Tough Reforms
- EMs rebuilt credibility after 1997–98 by cutting debt, keeping central bank independence and allowing painful adjustments.
- That policy response drove higher reserves, lower spreads and the rise of investable local-currency markets.
