Inflation has led to a strong U.S. dollar. But that's not always a good thing.

In this article @DX.1 Follow your favorite stocks CREATE FREE ACCOUNT In 2022, the dollar reached its highest level since the early 2000s, after experiencing a decade of sustained growth. The dollar has appreciated against most major currencies in 2024, including the yen, euro and yuan.

"I actually don't like the word strength because that has positive connotations," said Matthew C. Klein, co-author of "Trade Wars Are Class Wars" and founder of The Overshoot , a subscription research service on the global economy. "Really what we just mean is that it's more expensive relative to where it was before.

So dollars can buy more foreign things than ...

before, and that's obviously good if you want to buy those things." The dollar's value depends on economic conditions in the U.S.

and around the world, so it's difficult to label a strong dollar as simply good or bad overall. "The power projection of the United States is greater when the U.S.

dollar is strong, and as the U.S. dollar becomes weaker, it's less capable of projecting political power," said Harold James, professor of history and international affairs at Princeton University.

A strong dollar can also have its downsides. It's possible that demand for U.S.

goods abroad would decrease if international consumers can't afford to buy those goods. American workers could then be negatively impacted. "The people who benefit from the strong dollar are usually different people than would benefit from the weak dollar," James said.

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