Who believed that the best economic system was one in which businesses compete to gain profit with minimal or no government control

I believe Economist such as Adam smith would believe that.
Adam smith is one of the original economists that popularized the free market system. He believed that even with less or no Government intervention, the Market will regulate itself to the power of 'invisible hands' (or what we known as the power of supply and demand that always move toward equilibrium)

What effect did the development of trade have on settlement patterns in medieval times