Guilds

As the governments of Western Europe began to stabilize, and the lives of the people became easier, a new class of merchants and artisans began to emerge. These new workers formed themselves into what they called guilds.

A guild was a group of craftsmen, or merchants who shared a similar trade. The guild did two important things. First it helped regulate how business should be done. The guild established rules, which regulated a particular industry.

Secondly, the guilds allowed the craftsmen to control the price of their goods. As a combined group, they formed a monopoly. This allowed them to artificially set the prices at any level they desired.