World Blog by humble servant. Ukraine Chronicles 942 Russia cuts interest rate The Bank of Russia flags more cuts in 2022.When a strong currency becomes a problem. If a currency appreciates, then it can lead to a fall in domestic demand. Exports are less competitive, imports are cheaper. For an economy which is already growing slowly, a strong currency will worsen this economic slowdown strength or weakness of the U.S. dollar will impact FX traders and, in general, any international currency plays.

Why is a strong dollar not good? One of the downsides to a strong dollar is that it becomes more expensive for foreign countries to buy products made in the U.S. That means our exports will decrease. This is a disadvantage for U.S. producers in the global market because foreign countries will look elsewhere to find less-expensive products.Sep 3What Is Disposable Income? Disposable income, also known as disposable personal income (DPI), is the amount of money that an individual or household has to spend or save after income taxes have been deducted. At the macro level, disposable personal income is closely monitored as one of the key economic indicators used to gauge the overall state of the economy. When a strong currency becomes a problem. If a currency appreciates, then it can lead to a fall in domestic demand. Exports are less competitive, imports are cheaper. For an economy which is already growing slowly, a strong currency will worsen this economic slowdown. KEY TAKEAWAYS Disposable income is net income. It's the amount left over after taxes. Discretionary income is the amount of net income remaining after all necessities are covered. Economists monitor these numbers at a macro level to see how consumers save, spend, and borrow. Shelter, food, and debts are usually paid using disposable income. The government uses disposable income when deciding how much of a paycheck to seize for money owed in back taxes or child support .Disadvantages of a Strong Dollar Tourism to the U.S. Is More Expensive Visitors from abroad will find the prices of goods and services in America more expensive with a stronger dollar. Business travelers and foreigners living in the US but holding on to foreign-denominated bank accounts, or who are paid incomes in their home currency, will be hurt and their cost of living increased. Cost-push inflation is caused by higher costs of production, such as rising oil prices, higher nominal wages, and increased commodity prices. To reduce this kind of inflation, the government can pursue deflationary monetary policy and/or supply side policies. But, in truth, it is difficult to reduce cost-push inflation because higher interest rates are likely to cause a bigger problem of recession, and supply side policies, even if successful, will take a considerable time to take effect.