modern period (from the 16th to the 18th century). This led to some of the first instances of significant government intervention and control over the economy, and it was during this period that much of the modern capitalist system was established. Internationally, mercantilism encouraged the many European wars of the period and fueled European imperialism. Belief in mercantilism began to fade in the late 18th century, as the arguments of Adam Smith and the other classical economists won out. The Commercial Revolution was a period of economic expansion, colonialism, and mercantilism that lasted from approximately the 16th century until the early 18th century. Beginning with the Crusades, Europeans rediscovered spices, silks, and other commodities rare in Europe. This development created a new desire for trade, which expanded in the second half of the Middle Ages. European nations, through voyages of discovery, were looking for new trade routes in the fifteenth and sixteenth centuries, which allowed the European powers to build vast, new international trade networks. Nations also sought new sources of wealth. To deal with this new-found wealth, new economic theories and practices were created. Because of competing national interest, nations had the desire for increased world power through their colonial empires. The Commercial Revolution is marked by an increase in general commerce, and in the growth of non-manufacturing pursuits, such as banking, insurance, and investing. Trade and the new economy In the Old World, the most desired trading goods were gold, silver, and spices. Western Europeans used the compass, new sailing ship technologies, new maps, and advances in astronomy to seek a viable trade route to Asia for valuable spices that Mediterranean powers could not contest. In terms of shipping advances, the most important developments were the creation of the carrack and caravel designs in Portugal. These vessels evolved from medieval European designs from the North Sea and both the Christian and Islamic Mediterranean. They were the first ships that could leave the relatively placid and calm Mediterranean, Baltic or North Sea and sail safely on the open Atlantic. When the carrack and then the caravel were developed in Iberia, European thoughts returned to the fabled East. These explorations have a number of causes. Monetarists believe the main reason the Age of Exploration began was because of a severe shortage of bullion in Europe. The European economy was dependent on gold and silver currency, but low domestic supplies had