Hi - thank you for the question!

That's right. Martin Luther is considered to be a founder of Protestantism, one of the directions of Christianity. Martin Luther's Theses debated and criticised the Church and the papacy, but concentrated upon the selling of indulgences and doctrinal policies - main message was that we still believe in God but we view Catholic priests and monks are greedy and sinful. That's when Protestant Reformation started - early in Germany and then spread across Europe.

The Reformation was a triumph of literacy: new versions of doctrines, explanations, news papers etc. Criticism of all these Catholic Church aspects resulted (WHICH IS VERY IMPROTANT FOR OUR ANALYSIS) appearance of banking legislation in Netherlands. At that time it was still 100% reserve system, ie banks can lend only what they have. Prior to this Usury (lending money) was a sin in Catholic Church. For example, in The Divine Comedy Dante places the usurers in the inner ring of the seventh circle of hell.

An then 1 century later the banking legislation evolved into fractional reserve where bank could lend more than it had, effectively creating money...