IMF Meeting 2011

CNBC Poll: What Should IMF Leader Lagarde Do?

Jennifer Leigh Parker, |Writer,
IMF and World Bank Meeting - A CNBC Special Report

As the severity of Europe's financial crisis heightens, there's pressure on newly-appointed International Monetary Fund Managing Director Christine Lagarde to help pull Europe away from an economic cliff.

Yet how exactly the IMF should attack the problem is drawing disparate views. Many say Lagarde should call for Greek debtrestructuring, which means leaving the euro zone. Others say that strategy is extremely dangerous, given the amount of Greek debt owned by other nations, and would lead to financial catastrophe.

Thus far, Lagarde has said European banks need to raise capital, which suggests she'll push for a unified recovery. Her recent comment to CNBC confirms as much: "Greece's future is within the euro zone. Now, there will be a price to that." 

While Greece's return to the drachma is not likely, some believe the cost of its euro zone membership could be lessened if Lagarde would support the idea of a European fiscal union.

Whatever course she chooses, Lagarde is considered well-equipped to lead the charge, given her previous role as a French finance minister, and she's no stranger to Europe's financial and political scene.

The world is watching. What should Lagarde do?

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