economic policy in europe during the late middle ages and early renaissance treated economic activity as a good which was to be taxed to raise revenues for the nobility and the church. economic exchanges were regulated by feudal rights, such as the right to collect a toll or hold a fair, as well as guild restrictions and religious restrictions on lending. economic policy, such as it was, was designed to encourage trade through a particular area. because of the importance of social class, sumptuary laws were enacted, regulating dress and housing, including allowable styles, materials and frequency of purchase for different classes. niccolò machiavelli in his book "the prince" was one of the first authors to theorize economic policy in the form of advice. he did so by stating that princes and republics should limit their expenditures and prevent either the wealthy or the populace from despoiling the other. in this way a state would be seen as "generous" because it was not a heavy burden on its citizens.