Mohamed El-Erian, the former chief executive officer of Pacific Investment Management Co. whose exit spurred a leadership shakeup at the fund firm, plans to write a book about the rise and potential fall of central banks, according to a person familiar with the matter.
El-Erian, 55, will focus on what individuals, companies and governments can do to navigate an uncertain economic environment, said the person, asking not to be identified because the information isn’t public. He will work with the Wylie Agency, which presented the outline yesterday to publishers in the U.S. and U.K., the person said.
The author’s first book “When Markets Collide,” about global capital markets, was published in 2008 and became a New York Times bestseller. El-Erian announced his resignation from Newport Beach, California-based Pimco on Jan. 21 and in an internal memo to employees said he was thinking about writing a second book. After his resignation, reports surfaced of tension between El-Erian and Pimco’s co-founder Bill Gross.
Perceptions of central banks have evolved over the years, according to a summary of the book viewed by Bloomberg News. The institutions once seen as helping to usher in prosperity became viewed as enablers of bank malfeasance leading to the 2007-2009 financial crisis and then as agencies that used policy flexibility to avoid a global depression, according to the summary. Whether policy makers have regained control or are setting the world up for another debacle affects economic growth, job creation, inequality, financial stability, savings, investments and pensions.
The book’s tentative title is “The Rise and (Possible) Fall of Central Banks: What It Means for You.”
The literary agency, which was founded by Andrew Wylie and has offices in London and New York, counts novelist Salman Rushdie and former U.S. Vice President Al Gore among its clients, according to its website.
El-Erian, the son of an Egyptian diplomat who’s fluent in English, French and Arabic, joined Pimco in 1999 as a senior member of the money management and investment strategy group. He left in 2006 to serve as CEO of Harvard Management Co. and revamp the university’s endowment before rejoining Pimco in 2007. He also worked at the International Monetary Fund for 15 years, and served as a deputy director at the IMF from 1995 to 1997. El-Erian received a bachelor’s and master’s degree in economics from Cambridge University as well as a Ph.D. from Oxford University.