All this prosperity ended when the over-supply of oil in early 1982 caused oil prices to plummet and severely damaged the national economy . Interest rates skyrocketed in 1981 and external debt reached 86 billion dollars and exchange rates went from 26 to 70 pesos per dollar and inflation of 100 % . This situation became so desperate that Lopez Portillo ordered the suspension on payments of external debt and the nationalization of the banking industry in 1982 consistent with the Socialist goals of the PRI . Capital fled Mexico at a rate never seen before in history . The Mexican government provided subsidies to staple food products and rail travel ; this diminished the consequences of the crises on the populace . Job growth stagnated and millions of people migrated North to escape the economic stagnation . López Portillo 's reputation plummeted and his character became the butt of jokes from the press . In his last presidential address on September 1 , 1982 , he nationalized foreign banks . During his campaign , López Portillo promised to defend the peso " como un perro " ( " like a dog " ) , López Portillo refused to devalue the currency saying " The president who devalues , devalues himself . " When López Portillo left office in December 1982 , the economy was in shambles . He designated Miguel de la Madrid as the PRI candidate , the first of a series of economists to rule the country , a technocrat who turned his back on populist policies to implement neoliberal reforms , causing the number of state-owned industries to decline from 1155 to a mere 412 . After the 1982 default , crisis lenders were unwilling to loan Mexico and this resulted in currency devaluations to finance spending . An earthquake in September 1985 , in which his administration was criticised for its slow and clumsy reaction , added more woe to the problems . As a result of the crisis , black markets supplied by goods stolen from the public sector appeared . Galloping inflation continued to plague the country , hitting a record high in 1987 at 159.2 %
An earthquake in September 1985
1985 Mexico City earthquake
Institutional Revolutionary Party