Explain the main schools of thoughts and state their roles in aiding economics

A school of economic thought refers to a group of economists that have common thinking on how economies function. One of the primary economic schools of thought includes Islamic and scholasticism. School of Salamanca is another, and it is believed to be the earliest modern economics school. Also, there is mercantilism and physiocracy.

For instance, mercantilism limited princes and republics' expenditure and prevented the wealthy from despoiling others, and put guild restrictions on lending. As a result, this encouraged trade, significantly bolstering the economies. On the other hand, scholasticism, which dominated medieval feudalism, didn't focus on development but rather emphasized reconciliation with ethics and Christian theology. Islamic economic schools looked to implement broader economic policies and goals to help deprived people where there is free circulation of wealth. It advocated for the abolition of taxes on trade and transactions. In physiocracy, the focus was on the benefits of productive work, especially agriculture. Besides, it advocated for deregulation and free trade.