Price controls
Measures taken by the government to lower inflation were largely defeated by natural disaster. In early 1988, the administration of Daniel José Ortega Saavedra (Sandinista junta coordinator 1979–85, president 1985–90) established an austerity program to lower inflation. Price controls were tightened, and a new currency was introduced. As a result, by August 1988, inflation had dropped to an annual rate of 240 percent. The following month, however, Hurricane Joan cut a path directly across the center of the country. Damage was extensive, and the government's program of large spending to repair the infrastructure destroyed its anti-inflation measures.