Is the ECB a central bank overburdened with risk?

The short answer is: yes, but not of the kind you think.

The long answer starts by noting that in some quarters the financial risk coming from unconventional monetary policies is advanced as a reason for more caution (or cowardice?). For instance, the Bundesbank in the document on the OMT presented to the German Constitutional Federal Court gave quite some weight to this issue [1].

Draghi is dancing on the brink of a further rate reduction.

While Bernanke has started his difficult footwork towards the exit, Draghi has engaged in a minuet of his own to signal that the exit is far into the future and that indeed further ease could come. The ranking of the FED and the ECB in terms of monetary policy ease has changed, or at least is changing, with interesting possible consequences for exchange markets. Factor in Kuroda and Carney for some further entertainment coming from central banks in the foreseeable future.