A profound change is occurring in the global economy, as the emerging market economies enjoy much more rapid growth and relatively much sounder public finances than the industrial countries, which will place increasing global economic importance on the emerging economies.

Attempts at austerity and deleveraging in Europe have converted an economic problem into a political dilemma, with leftist governments rising against Germany's austerity-laced rescue packages. Germany now faces a tough economic decision that will involve choosing between a breakup of the current euro system and a movement toward a common fiscal policy in Europe.

If there is one thing we learned from the 2008-2009 global economic recession, it is how much more interconnected the global economy has become and how difficult it is for emerging market economies to decouple from industrialized economies.

Whereas public debt levels in many major industrialized countries will soon exceed 100 percent of GDP, those in the major emerging market economies generally range from 40 to 50 percent of GDP.

Are global corporations cleaning up their supply chains? The debate over the abysmally low wages paid to workers in emerging economies illustrates the difficulty. There are two conflicting narratives, both tied to China.

The maintenance of global liquidity conditions will afford the emerging market economies with a window for the strengthening of their underlying macroeconomic fundamentals.

Capital inflow bonanzas are troublesome for advanced economies, in which they are associated with economic crises, and for emerging markets, in which they contribute to economic vulnerability.

Emerging-market economieswill foot the bill for Argentina's spectacular triumph over its foreign creditors.