Price controls
Measures taken by the government to lower inflation were largely wiped out by natural disaster. In early 1988, the administration of Daniel Ortega (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%. The following month, however, Hurricane Joan cut a devastating path directly across the center of the country. Damage was extensive, and the government's program of massive spending to repair the infrastructure destroyed its anti-inflation measures.