Which is the most improved vacation opportunity for American dollars?

Sam asks:

Given all the recent global currency changes, and other turmoil, what is the best vacation destination for American’s who earn dollars.

Is it possible that I/others can go somewhere previously unaffordable because of the changes?

The dollar is much stronger in many parts of the world these days.  But the currency of Ukraine has taken an especially steep dive as of late.  It’s down about 17% in the last two weeks and that is mostly for geopolitical reasons, not hyperinflation.  So go quickly, and avoid the East!  (Whoops!  Kharkiv too…)  I hear Kiev is lovely in February.

Given government shenanigans, it is hard to get a read on the true price level and real exchange rate in Argentina, but the country has offered incredible bargains during crises in times past, and our winter is their summer.  Brazil has become much cheaper, relative to the past, but it still feels more expensive than traveling in the U.S., for the most part.  But if you are convinced you must go there, try now.  Tokyo is much cheaper than people think, but that has been the case for quite a while.

In my opinion most of the eurozone is at about PPP right now for Americans, Berlin has the best bargains, maybe Paris the worst.  Spain and Portugal to me seem to have had a lot of unreported deflation.  Just say nein to die Schweiz, they let Scott Sumner down and now you must pay for that.

Mexico remains a tremendous bargain, with a rate of about fifteen pesos to one dollar.  The best food in Mexico only costs about $2.50 a meal to begin with, now it is cheaper yet.  Most of the country is quite safe, in Yucatan the murder rate is about as low as in Finland.