Two things were happening, two important events happened, events of long-term importance,
happened during the period of the mid and late 18th century when this change happened,
when we began to get these wave-like expansion and contraction patterns.
One event in the Industrial Revolution, in the mid and late 18th century in Great Britain,
starting in Great Britain, spreading to the rest of the world slowly but surely, so to speak,
became the industrial market economy.
And so one school thought, and this is not just the rest of schools thought, but in this,
one group of writers or economists thought there must be something deep within the market
economy structures, deep within industrial capitalism, the cause of the business cycle,
the cause of the booms and busts.
That was one group of writers.
And there were several subsets of this, trying to identify which particular aspect of the
market economy will lead to the rest of this.
And another group, much smaller group, said that there was another institution that began
around the same period, again starting in Great Britain and spreading to the rest of
Western Europe and the United States, which also might be a cause of this problem.
and that is the institution of fractional reserve banking and particularly central banking.
The banking system, the fractional reserve banking system also begins around the same time.
Here you have a situation where two things are happening, so coincidences occurring, A and B, which causes it.