▁was ▁based ▁on ▁a ▁tim et able ▁to ▁announ ce ▁a ▁gradually - decl ining ▁rate ▁of ▁dep reci ation . ▁The ▁announ c ements ▁were ▁repeated ▁on ▁a ▁rolling ▁basis ▁to ▁create ▁an ▁environment ▁in ▁which ▁economic ▁agents ▁could ▁disc ern ▁a ▁government ▁commit ment ▁to ▁def lation . ▁In fl ation ▁gradually ▁fell ▁throughout ▁ 1 9 8 0 ▁to ▁below ▁ 1 0 0 %. ▁ ▁However , ▁in ▁ 1 9 7 8 ▁and ▁ 1 9 7 9 , ▁the ▁real ▁exchange ▁rate ▁appreciated ▁because ▁infl ation ▁consist ently ▁out p ac ed ▁the ▁rate ▁of ▁dep reci ation . ▁The ▁over valu ation ▁ultimately ▁led ▁to ▁capital ▁flight ▁and ▁a ▁financial ▁collapse . ▁ ▁G row ing ▁government ▁sp ending , ▁large ▁w age ▁ra ises , ▁and ▁in efficient ▁production ▁created ▁a ▁chron ic ▁infl ation ▁that ▁rose ▁through ▁the ▁ 1 9 8 0 s , ▁when ▁it ▁briefly ▁exceed ed ▁an ▁annual ▁rate ▁of ▁ 1 0 0 0 %. ▁Success ive ▁reg imes ▁tried ▁to ▁control ▁infl ation ▁by ▁w age ▁and ▁price ▁controls , ▁cut s ▁in ▁public ▁sp ending , ▁and ▁restriction ▁of ▁the ▁money ▁supply . ▁E ff ort s ▁to ▁stem ▁the ▁problems ▁came ▁to ▁n aught ▁when ▁in ▁ 1 9 8 2 ▁Argentina ▁came ▁into ▁conflict ▁with ▁the ▁United ▁Kingdom ▁over ▁the ▁F alk land ▁Islands . ▁ ▁In ▁August ▁ 1 9 8 2 , ▁after ▁Mexico ▁had ▁announced ▁its ▁in ability ▁to ▁service ▁its ▁deb