Central Banks Seek New Crisis Options
Ben Bernanke and Mario Draghi, with words but not yet actions, demonstrated this week that they are on red alert about the global economy.
Expectations are now high that Mr. Bernanke’s Federal Reserve and Mr. Draghi’s European Central Bank will act soon to address those worries. But both face immense tactical and political challenges and neither has a handbook to follow.
The stakes are higher for Mr. Draghi. He is in his first year of an eight-year term as the ECB’s leader, much of the euro area is in recession and the currency he oversees is imperiled—in part by fights …