During the war in the 1980s the FSLN initiated a program that called for a mixed private-public economy with the vast majority of nationalizations being of property formerly owned by the Somozas and the National Guard leadership.
 By the mid-1980 the war was exhausting the economic and political resources available to the FSLN.
 Also, fear and uncertainty resulted in economic stagnation. The FSLN turned to an inflationary form of deficit financing to prime the economy. Turned into hyperinflation by the late 1980s (monthly inflation approached 200%). The Nicaraguan population developed a deep dissatisfaction and desperation at this point.
 The national election in February 1990 saw the Sandinistas lose to a conservative but heterogeneous coalition of seven parties united under the banner of Union Nacional Oposiora (UNO).