The historical economic system that dominated Europe in the Middle Ages was feudalism. This system was characterized by a hierarchy where lords owned land and granted it to vassals in exchange for military service and protection. Peasants or serfs worked the land and provided food, while the lords maintained political and economic control. Feudalism shaped the social structure, limiting social mobility and creating a rigid class division. It remained in place until the Renaissance began to shift the economic dynamics toward a more market-oriented system.