The Formation of Western Europe
The Medieval European Economy skyrocketed after agriculture, trade, and money became a essential tool for expanding territory and power. As towns and cities grew, population increased which required a higher demand for trading. Trading with outside forces such as Muslims and Byzantine empires even excels the growth more. The guilds are a organization of people in one business or fields of businesses that seek the same interest of growing the economy and social standards.
The Merchants Guild was the first guild banded together. Merchants were whole-sale trades who would make large trading decisions. Multiple merchants would ban together and form a guild to increase their power in the social class even more to make larger trades. Joining together made a more powerful and larger force for trade but it also gained access to more wealth.
Craft guilds were Merchants with a specific trade, like a blacksmith, tailors, winemakers, glass-makers, or artists. Guilds eventually evolved rules or laws within each of their guilds to put out the most goods to trade. The bigger force you have at the same time using that force to put out more goods with trading near and far. More goods that maybe might not be found locally can now be gained access to. This overwhelming amount of wealth eventually went back to the governments.