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Five ways Lagarde can rescue the IMF

I remember sitting in a meeting at the International Monetary Fund back in the 1980s, debating the meaning of a small annotation in the margin of a memorandum that had just returned from the office of the managing director. It was just a squiggle; yet we debated possible interpretations for a full half hour.

This is a small example of what is well known to IMF insiders – the post of managing director is not to be taken lightly in an institution that operates like a well-disciplined army, with staff looking to the general for decisive leadership.

This is why the resignation of Dominique Strauss-Kahn has been so disruptive. It is also why Christine Lagarde – who following Tuesday’s backing from the US, will assume the post shortly barring any legal complications – must now move on five issues in her first few months.

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