What was the 1720 French speculation collapse centered on John Law’s Mississippi Company called?

The 1720 French speculation collapse centered on John Law’s Mississippi Company was called the Mississippi Bubble.

John Law, a Scottish financier, became influential in France after proposing a bank-and-paper-money system. His Mississippi Company held a monopoly over French trade and colonization claims in North America, especially the Mississippi basin. Promotional stories about the region’s wealth helped drive intense demand for company shares.

The company’s shares rose dramatically in 1719 and 1720 as investors bought with borrowed money. The boom was connected to Law’s Banque Royale and the expansion of paper currency. When confidence faltered, investors sought to exchange notes and shares for hard money. The system unraveled, and Law fled France in December 1720.

The Mississippi Bubble occurred at roughly the same time as Britain’s South Sea Bubble, but the companies and governments were different. The collapse damaged confidence in paper money and contributed to later suspicion of large financial schemes. It also showed how a monopoly, monetary expansion, and speculative credit could reinforce one another.