How did centrallized feudalism lead to economic growth?

Answer 1

Feudalism encouraged growth by establishing order on the chaotic situation in Europe at the time. While the feudal lords did take their share of any profits made, they ensured that trade was possible, and by creating a monopoly on the use of force (most of the time) they made travelling to trade a less risky proposition. If a trader expected to be robbed at any point along his travel, he was less likely to go than if he understood that he would pay pre-determined taxes on it (and not get killed in the bargain).

Feudal lords further encouraged trade and growth through the establishment of regional fairs. These fairs generated profits for the traders involved, and allowed the local lord to reap some of the benefits. Feudalism also allowed the founding of cities and the guild system.

Answer 2

It lead to economic growth because the empowered had economic knowledge and greed that propelled overall growth.