That reduces the noise in relative price changes, and therefore improves the workings of the price mechanism. Nonetheless, central bankers do monitor divergences. Why do we monitor divergences if there is nothing we can do about them? First, our knowledge of the monetary transmission mechanism is incomplete.
Insurers are exposed to the effects of a pandemic through a number of business lines, including such risks as business interruption, health, disability, medical malpractice, workers’ compensation, and life insurance. Estimates of the impact of a global flu pandemic on the insurance industry vary widely.