Remember when conventional wisdom said central banks are apolitical and impartial, and anyone who claimed that the world's money printers (which in the New Normal of failed fiscal policy means the only source of stimulus, and thus infinite political leverage and an existence "above the law") are in fact the most political and partial entities was, what else, a conspiracy theorist? Well, there goes another conspiracy theory, replaced by conspiracy fact.
Yesterday, Polish magazine Wprost released a recording of a meeting between Interior Minister Bartlomiej Sienkiewicz and central bank Governor Marek Belka which took place in a Warsaw restaurant in July 2013. In the recording, Belka told the minister he would be willing to help the government out of its economic troubles if the finance minister was fired.
According to Bloomberg, which released the details earlier, Sienkiewicz allegedly heard on recording asking Belka if central bank would be able to support government 8 months before election if slow economic recovery and weak budget situation coincide with surge in support for opposition Law and Justice party.