Page "Isabel Martínez de Perón" Paragraph 20

Faced with record trade and budget deficits, though with an otherwise stable economy, the new Economy Minister, Celestino Rodrigo proceeded to apply " shock therapy ," ordering a surprise halving of the peso's value and, by forcing those who could to stampede towards the U. S. dollar, destroying the fragile financial balance that had been maintained to that point.

Consumer prices doubled between May and August, alone, and though sharp, mandatory wage hikes had been negotiated between the government, labor and employers, the resulting shock ( known as the Rodrigazo ) ignited protest across Argentina, including a two-day general strike by the CGT ( the first ever against a Peronist administration ).

Following a riot in front of his offices, the now hated José López Rega was hastily appointed Ambassador to Spain and boarded a flight into exile.