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By Desmond Lachman
Published: May 18 2011 22:30 | Last updated: May 18 2011 22:30
Given that his fall from grace came at the most awkward of times for the International Monetary Fund's dealings with Greece and Portugal, many have written about Dominique Strauss-Kahn's talents and major influence during recent negotiations. History, however, is more likely to remember him as the man who put the IMF on the road to decline, by his misguided handling of the eurozone debt crisis.
Mr Strauss-Kahn's decision to treat the crisis as a matter of liquidity rather than solvency led the IMF to eschew any notion of debt restructuring, or exiting from the euro, as a solution to the periphery's public sector and external imbalance problems. Rather, he opted for draconian fiscal tightening and radical structural reform as a cure-all for Greece, Ireland and Portugal.
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