Disinflationary forces have strengthened as oil and commodity prices have dropped. Although the latter has benefited commod- ity- and oil-importing countries and increased the room to maneuver for monetary policy in countries with higher inflation, it has increased financial risks in some exporting countries and in the oil sector.
As a result of these developments, inflation expecta- tions and long-term bond yields have fallen. Bold monetary policy actions have been taken in both the euro area and Japan to arrest and reverse this disinflation pressure, while the pull of expectations for rising U.S. policy rates and the push of addi- tional monetary stimulus by other major economies have sparked rapid appreciation of the U.S. dollar. Full Report

All photography by Jared Chambers