What was the 1720 collapse of John Law’s Mississippi Company scheme in France called?

The 1720 collapse of John Law’s Mississippi Company scheme in France was called the Mississippi Bubble.

John Law’s company held a monopoly connected with French trade and colonial claims in North America. Law also controlled important parts of France’s paper-money and banking system. Speculation drove the company’s shares to extraordinary prices in 1719 and early 1720, attracting investors from across French society.

Confidence collapsed in 1720 when investors tried to convert paper money and company shares into more reliable assets. The company’s share price plunged, and Law fled France after the scheme failed. The episode damaged public trust in paper currency and speculative finance for years.

The Mississippi Bubble occurred alongside the English South Sea Bubble, another famous speculative collapse in 1720. They were separate companies and national episodes, although their timing and structure are often discussed together. Mississippi Company shares were linked to French colonial finance, while South Sea Company shares were associated with British government debt and trade claims.