Which company was central to the Mississippi Bubble that collapsed in France in 1720?

The Mississippi Company was central to the speculative bubble that collapsed in France in 1720.

The company was associated with John Law, a Scottish financier who gained control of French colonial and commercial privileges. Law promoted company shares while developing a paper-money system through the Banque Générale, later transformed into the Banque Royale. Optimism about trade with Louisiana helped drive demand for the shares far beyond realistic expectations.

Prices rose rapidly in 1719 and early 1720, attracting investors from across French society. Confidence then broke as people sought to exchange paper assets for hard money. Share prices plunged, and the financial system suffered a severe crisis.

The Mississippi Bubble is often confused with Britain’s South Sea Bubble, which also burst in 1720. They were separate schemes in different countries, although both involved inflated expectations, company shares, and speculative public enthusiasm. The Mississippi Company later became known as the Compagnie des Indes.