Which 18th-century bubble collapsed after the Mississippi Company failed in France in 1720?

The Mississippi Bubble was the 18th-century French speculative bubble that collapsed after the Mississippi Company failed in 1720.

The company was promoted by Scottish financier John Law and received a monopoly over trade and development connected with French Louisiana. Law also controlled a French bank that issued paper money, creating a close link between company shares and expanding currency. Share prices rose dramatically as investors chased promised wealth from colonial commerce.

Confidence collapsed when investors tried to convert paper claims and shares into more reliable assets. The company’s share price fell sharply in 1720, damaging public trust in Law’s financial system. The Mississippi Bubble is often discussed alongside the South Sea Bubble in Britain, but they were separate schemes in different countries that crashed during the same year.