The latter Davíð Oddsson government (1995–2004) (under the influence of Milton Friedman's neoliberal ideas) embarked on a course of tax cuts. It cut the corporate income tax to 18%; it abolished the net wealth tax; it lowered the personal income tax and inheritance tax. This combination of opening up of the economy, fiscal and monetary stabilisation created an entrepreneurial climate in Iceland that spurred record economic growth in the country, with the real average income of individual households increasing by more than 17%, but was also one of the causes of the 2008–2012 Icelandic financial crisis.