Begin's economic policies sought to liberalize Israel's socialist economy towards a more free-market approach, and he appointed Simha Erlich as Finance Minister. Erlich unveiled a new economic policy that became known as the "economic transformation". Under the new plan, the exchange rate would from then on be determined by market forces rather than the government, subsidies for many consumer products were cancelled, foreign exchange controls were eased, the VAT tax was raised while the travel tax was cancelled, and customs duties were lowered to encourage imports of more products. The plan generated some improvement; cheap and high-quality imported products began to fill consumer shelves, the business sector benefited greatly, and the stock market recorded rising share prices. However, the program did not improve the lives of the Israeli people as Begin had hoped. The combination of the increased VAT, the end of subsidies, and a rise in the U.S. dollar exchange rate set off a wave of inflation and price increases. In particular, the fact that government spending was not significantly reduced in tandem with the liberalization program triggered a massive bout of inflation. On 17 July 1978, the Israeli cabinet met to discuss rising inflation, but Begin, declaring that "you cannot manage economics over the housewife's back", halted all proposals. In the end, the government decided not to take any actions and allow inflation to ride its course. Begin and his other ministers did not internalize the full meaning of the liberalization plan. As a result, he blocked attempts by Erlich to lower government spending and government plans to privatize public-sector enterprises out of fear of harming the weaker sectors of society, allowing the privatization of only eighteen government companies during his six-year tenure. In 1983, shortly before Begin's resignation, a major financial crisis hit Israel after the stocks of the country's four largest banks collapsed and were subsequently nationalized by the state. Inflation would continue rapidly rising past Begin's tenure, and was only brought under control after the 1985 Israel Economic Stabilization Plan, which among other things greatly curbed government spending, was introduced. The years of rampant inflation devastated the economic power of the powerful Histadrut labor federation and the kibbutzim, which would help Israel's approach towards a free-market economy.