ASK most people to name the rich-world countries with the worst public finances and they will single out Portugal, Italy, Greece and Spain (aka the PIGS). But viewed in terms of adjustments to spending and revenue required to bring public debt down to safe levels by 2050 (the fiscal gap), those countries do not fare too badly. Instead, another quartet of countries comes to the fore: Japan, New Zealand, the United States and Luxembourg (commonly known as the NULJ). That these countries are not on the tips of the tongues of those forecasting economic doom is down to two factors. First, most people don't think with such long horizons in mind. Second, all these countries have their own currencies, and so have the option of inflating debt away if the necessary consolidation becomes too painful.
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