Nixed blessings

ECB can count itself lucky among central banks

Is Ben Bernanke jealous of Mario Draghi? How about Haruhiko Kuroda or Mervyn King? The heads of the US, Japanese and British central banks may not envy the unique challenges faced by their Euro zone peer. But there is much less wishful thinking about the powers of the European Central Bank, and that's something they should like to share.

Sure, Mario Draghi's job at the ECB is like building a complex ship in the midst of a severe storm. The Frankfurt institution is constantly setting new precedents, as it deals with 17 member governments, several of which seem caught in perennial political or economic crisis. It cannot keep to its mandate to be apolitical. The constraints on its ability to act as a money-supplier of last resort are dangerous.

In comparison, Kuroda may seem to have a charmed life. His mega-plan for money printing is in perfect accord with the wishes of the single government that he answers to. He easily swept away a restriction which would have limited the BOJ's ability to print as much as he thinks necessary.

Ben Bernanke also seems to have a much easier time of it than Draghi. Yes, he has to deal with flak from politicians and dissent from within the Federal Reserve, but what he wants he generally gets. And if policy freedom is what matters, Mark Carney, King's successor at the Bank of England, will be sitting pretty. The UK government chose him to make bold policy moves.

But with these freedoms come unenviable, probably impossible, responsibilities. Draghi's peers are all expected to increase economic growth and decrease unemployment. Sound economies need sound monetary policies, but central bankers do not have a wand to wave which will stimulate corporate investment or unclog labour markets, let alone counter the forces of demography. Kuroda is trying out policies which have proven distinctly impotent in the United States and UK. Draghi's tasks are daunting: keep the euro together and avoid financial panic. He may struggle to jump over this hurdle. But Bernanke, Kuroda and Carney face bars which even superheroes could not surmount.