John Law (1671-1729) was a Scottish Economist. He became Controlleur Général des Finances in France under the Regency of Philippe, Duke of Orléans, for the young Louis XV. John Law is remembered for being one of the first men to have created paper money as well as for having created the first central bank of France, the Banque Général and later Banque Royal. His system was also able to reduce the National Debt of France.
But events went out of control because of several factors: the state created too much paper money, John Law tried to limit the possession of precious metals but most notably the "Mississippi bubble" exploded and provoked a Financial Crisis that made the Banque Générale bankrupt. (Note: I'm no economists. I might be simplifying what happend a bit too much as I only tell what I understood.)
Was it possible to avoid the Collapse of John Law's system? And if so, what would be the consequences of this on France and the World?
But events went out of control because of several factors: the state created too much paper money, John Law tried to limit the possession of precious metals but most notably the "Mississippi bubble" exploded and provoked a Financial Crisis that made the Banque Générale bankrupt. (Note: I'm no economists. I might be simplifying what happend a bit too much as I only tell what I understood.)
Was it possible to avoid the Collapse of John Law's system? And if so, what would be the consequences of this on France and the World?