The US can teach Europe a thing or two about financial crises

While EU leaders argue over the need for coronabonds, the Federal Reserve and Congress are protecting their economy

The US model of capitalism is deeply flawed. It is highly unequal, and an inadequate welfare system means that millions of people are either living in poverty or constantly teetering on the edge. Citizens of the EU have it cushier, with more generous pensions, unemployment pay and in-work benefits.

But as the events of the past month or so have shown with brutal clarity, in a crisis the American system works better. It is more flexible, more innovative and much faster to act. The Federal Reserve in Washington has acted more speedily and provided more stimulus than the European Central Bank in Frankfurt, but the contrast has been even more marked when it comes to fiscal policy - the tax and spending measures for which governments are responsible.

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