Which speculative bubble burst in France during the same period as Britain’s 1720 South Sea Bubble?

The Mississippi Bubble burst in France during the same period as Britain’s 1720 South Sea Bubble.

The scheme centered on the Mississippi Company, which was controlled by Scottish financier John Law. Law’s company held a monopoly over French trade and colonization in the Mississippi region, while his banking system issued paper money and encouraged investment in company shares.

Share prices rose dramatically in 1719 and 1720 as investors accepted exaggerated claims about the wealth of Louisiana. Confidence then collapsed, and the company’s share price plunged. The resulting financial disruption damaged Law’s monetary system and forced him to leave France.

The Mississippi Bubble and South Sea Bubble were separate schemes, but their timing made them closely associated in financial history. Both are classic examples of speculative enthusiasm amplified by monopoly claims, easy credit, and persuasive promotion.