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The greatest advances in psychiatric treatment came in the latter part of the 19th century. Emil Kraepelin, a German psychiatrist, made an important contribution when he developed a classification system for mental illnesses that is still used for diagnosis. Sigmund Freud, the famous Viennese psychiatrist, developed techniques for analyzing human behavior that have strongly influenced the practice of modern psychiatry. Freud first lectured in the United States in 1909. Swiss psychiatrist Carl Jung, a former associate of Freud's, revolutionized the field with his theory of a collective unconscious.

Another great change in treatment began in the 1950s with the development of medication that could be used in treating psychiatric problems, such as depression and anxiety.

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