By Garfield Reynolds March 11 (Bloomberg) -- Mohamed A. El-Erian , whose company runs the world’s biggest mutual fund, said deteriorating public finances may affect the global economy more than is currently realized. Governments may have to raise taxes and slash spending to cope

“The importance of the shock to public finances in advanced economies is not yet sufficiently appreciated and understood,” El-Erian, co-chief investment officer at Pacific Investment Management Co. , wrote in an article on the Financial Times Web site. The potential damage from increased

“The importance of the shock to public finances in advanced economies is not yet sufficiently appreciated and understood,” El-Erian wrote in a comment piece posted on the Web site of Pacific Investment Management Co. , where he serves as co-chief investment officer. The potential damage