El-Erian: IMF Board Is Correct to Support Lagarde

The transcript discusses Christine Lagarde's conviction for negligence and the implications for the IMF's credibility. It highlights the legal issues faced by previous IMF directors and critiques the selection process for IMF leadership, which has shifted from technocrats to politicians. The IMF Board's confidence in Lagarde is reaffirmed, but the need for reform in governance and a merit-based selection process is emphasized. The discussion also touches on the roles of the US and Europe in the leadership of the IMF and World Bank, advocating for a shift from nationality-based to merit-based appointments.

What was the main reason for Christine Lagarde's conviction?

• Negligence

• Fraud

• Embezzlement

• Corruption

What change in the IMF's selection process is associated with legal issues?

• From politicians to technocrats

• From technocrats to politicians

• From economists to bankers

• From bankers to economists

Why did the IMF Board decide to retain Christine Lagarde?

• She is well-liked and effective

• She was the only candidate

• She promised reforms

• She had no legal issues

What is a major critique of the IMF's current selection process?

• It is too expensive

• It is too fast

• It is not transparent

• It is too democratic

What is necessary for reforming the governance of the IMF and World Bank?

• Increasing the number of leaders

• Maintaining current leadership

• A nationality-based process

• A merit-based process