What was the name of the 1720 French speculation crisis centered on John Law’s company?

The 1720 French speculation crisis centered on John Law’s company was the Mississippi Bubble.

John Law promoted the Mississippi Company, which held a monopoly over French trade interests in the Mississippi region. His financial system also linked the company to paper money and public debt. Investors were attracted by the prospect of immense colonial wealth, and shares rose far beyond what the company’s actual operations could justify.

Confidence collapsed in 1720 when investors tried to convert shares and paper currency into more reliable assets. The resulting panic damaged Law’s system and forced him to flee France. The episode unfolded during the same year as Britain’s South Sea Bubble, which is why the two events are frequently discussed together.

The Mississippi Bubble was not simply a stock-market event: it was also a test of paper money, government finance, and monopoly power. Its failure contributed to long-lasting French suspicion toward paper currency and large financial schemes.