Elected in a landslide, his administration had a rocky start marked by an early stabilization plan that had failed by December and a series of corruption scandals surrounding his freewheeling in-laws.

After a tentative stability had been achieved by the end of 1990, a new currency crisis in January 1991 led President Menem to transfer his Foreign Minister, Domingo Cavallo, to the Economics Ministry.

Cavallo, an unorthodox economist remembered for having rescinded the Central Bank's hated Circular 1050 and its crushing interest rate surcharges during a stint as Central Bank President in 1982, was entrusted to bring stability to Argentina's shredded currency, the austral, and to begin the repair of Argentina's nearly non-existent relations with its foreign creditors (owed arrears on billions of debt since 1988) and the country's own sizable upper class (who held well over US$50 billion in assets abroad).

Currency stability led particularly to lower inflation, which fell from 1,350% in 1990 to 84% in 1991; prices rose 1.3% in the month of August (the best showing since 1974) and the hitherto unpopular Menem saw his approval soar.

[3] Menem's contentious divorce from his wife of 25 years, Zulema Yoma, reports of massive corruption surrounding his in-laws and the resignation under indictment of his Public Works Minister and privatizations guru, Roberto Dromi, could not overshadow the improving economic climate among the electorate at large.