As emerging markets continue their fiscal dominance over their developed market counterparts, EM bonds are increasingly reaping the benefits. The global balance has quietly inverted. Before 1998, emerging markets (EM) ran chronic external deficits and were the epicenter of 1990s crises. After 1998, developed markets (DM) took up that mantle—running large, persistent deficits and driving the major crises of the new millennium. The difference is policy. EMs generally have lower levels of government and/or tot ...