Pain now, gain — maybe one day

Apart from a few virtuous souls, most governments around the world run budget deficits, much of the time. It’s all fine until the bond vigilantes come knocking on your door. When that happens, the markets expect you to put your house in order yesterday. As Jon Hay reports, fiscal adjustment is not the end — many countries have survived it and come out healthier. But while it’s going on, the cure is likely to feel worse than the disease.