Following the Yom Kippur War Israeli defense spending rose dramatically, exposing the weaknesses of the state-run economy. The result was rampant inflation that led Israel to recall the lira in 1980 and issue the sheqel. This move did not sufficiently curb inflation and consequently the sheqel was recalled in 1985 in favor for the Israeli new sheqel, a move implemented together with a comprehensive economic stabilization program which stemmed inflation and set the stage for high growth in the 1990s. Israel had also undertaken a privatization effort beginning in the late 1970s.