The lack of an appropriate and modern regulatory regime and resolution authority helped cause this crisis, and it will continue to constrain our capacity to address future crises until we put in place fundamental reforms.

WSJ: Geithner: My Plan for Bad Bank Assets

It is unclear, though, that Sweden's supply-side revolution can be replicated without letting private firms run state-funded schools, as that country does. (The Tories have decided that allowing schools to make profits from taxpayers would be a bad headline too far.) With public finances likely to be tight for years to come, this decision may constrain new capacity, since non-profit schools cannot finance start-up costs by borrowing against future income.

ECONOMIST: The Conservatives on education