Crony capitalism may need crises. However in a true free market economy, a crisis wouldn't be needed.
Again, this distinction is an artificial one.
A.) There has
never been a "true free market economy". Even Ayn Rand understood this when she subtitled her book
Capitalism as
The Unknown Idea.
From the very beginning of capitalism - which again, is
not synonymous with money and markets in isolation, but refers to a generalized social system displacing other modes of transportation - the State has been intimately involved in building and protecting Capital. From the days of English Enclosure, when the proto-
bourgeois began parceling out communal grazing land to themselves and cutting peasants off from their sources of sustenance, through State-sponsored colonialism (e.g. the Dutch East India Company), through to the American System of protective tariffs, subsidies and rebates, up to the greenback policy of the American Civil War and the New Deal... a "true free market" has not existed. Even chattel slavery in the Americas was State-sanctioned and State-subsidized - the Fugitive Slave Laws etc.
B.) There will never
be a "true free market economy" precisely because the market
intrinsically requires crises to pave the way to new profits. The profit motive,
in itself, leads to the conditions that create crises, not because of "greed" but because of the
need for Capital to constantly reproduce itself. These crises in turn means that a central co-ordinating body is required, which means either a government or an amalgamation of businesses which effectively function as cartels. There will never
not be a regulatory apparatus within capitalism.
Again, this is the distinction:
Most labor in Greece, Egypt, Rome, China, Persia, etc. was not renumerated based on an hourly wage. Where money was recompensed for work, that money was typically (though not always) paid in advance, as a salary; far more common was direct labor for goods and services, slavery, etc. Money, the market, etc. existed, but the whole of social life and labor were not oriented towards the market. This change occurred
only after the fifteenth century in Europe, with the decline of the guild system, the gradual erosion of vassalage and serfdom, etc.
What, I think, is typically referred to as "true free market capitalism" really means something like artisanal small proprietorship, which... isn't really capitalism at all, having a social basis other than wage labor. There was never a time, contrary to
Little House On The Prairie, where a bunch of tiny smallholders lived in self-sufficient units and produced surplus for sale as a majority of the society.