Which 1720 French speculative episode centered on the Mississippi Company?

The Mississippi Bubble was the 1720 French speculative episode centered on the Mississippi Company.

The company was promoted by Scottish financier John Law, who also controlled France's Banque Générale and later the Banque Royale. Investors bought shares based on expectations about the company's claimed commercial opportunities in French Louisiana and on the easy availability of paper money and credit. Share prices rose dramatically before confidence collapsed.

Law's financial system connected banking, government debt, currency, and company shares in an ambitious attempt to stabilize France's finances. Instead, excessive issuance of banknotes and unrealistic expectations helped produce a bubble. When investors tried to convert paper wealth into more reliable assets, the system unraveled and share prices plunged.

The Mississippi Bubble occurred at roughly the same time as England's South Sea Bubble, but they were separate schemes in different countries. Both became classic examples of early modern financial speculation and helped shape later debates about paper money, public debt, and market regulation.