ABSTRACT
This chapter analyzes the impact of two stability conditions for the Sandinista mixed economy: the accumulation policy and the price policy. A first source for financing state accumulation would be government taxation of private production, income, and exports. The intention was that a high accumulation rate be sustained by increased export production. In general, an increasing share of the economically active population left production work and began to work in commerce. In 1986 and 1987 the government continued the policy of on the one hand trying to stimulate production and on the other aiming at more control of domestic trade. The government attempted to increase labor productivity by implementing a material incentive policy. From February 1988 onward, the government carried out significant changes in the economic policy. The change started with a monetary reform, which implied the introduction of a new Cordoba, worth 10,000 old cordobas.
