Morgan Stanley Says Oil Price Decline Is Driving Long-Term Inflation Expectations

The drop in oil recently has been a thing of beauty to observe. One thing that sticks out is the impact the drop in oil has had on inflation expectations.

Morgan Stanley noted on Monday that the decline in oil has coincided with a drop in long-term inflation expectations:

The inflation expectation decline isn't local to the United States -- it's global:

To control inflation expectations in a centrally-planned economy, all one might have to do is crush oil prices, much like the $2 drop seen into the close Monday afternoon that drove spot oil to its sub $80 close, the lowest since 2012.