When Dominique Strauss-Kahn became the Managing Director of the International Monetary Fund in late 2007, he saw a number of significant changes. The organization had lost much of its legitimacy over the past decade, and country seemed less willing to borrow from the fund. The developing countries had increased their foreign exchange reserves, which reduces their reliance on possible IMF support packages. In addition, the IMF found itself unable to influence the macroeconomic policy … Read more »

When Dominique Strauss-Kahn became the Managing Director of the International Monetary Fund in late 2007, he saw a number of significant changes. The organization had lost much of its legitimacy over the past decade, and country seemed less willing to borrow from the fund. The developing countries had increased their foreign exchange reserves, which reduces their reliance on possible IMF support packages. In addition, the IMF found itself unable to influence the macroeconomic policy of the United States and China to reduce global current account imbalances and the Third World countries complained that they were underrepresented in the fund. As the new managing director of the IMF, Strauss-Kahn had to decide how best to address these challenges and in which direction to steer the fund.
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from
Rawi Abdelal,
David A. Moss,
Eugene Kintgen
Source: Harvard Business School
26 pages.
Release date: 25 February 2008. Prod #: 708035-PDF-ENG
The International Monetary Fund in the crisis HBR case solution

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