The "Sun King" of France (reigned 1643-1715). His extravagant spending and constant wars contributed to the kingdom's immense national debt.
The total amount of money owed by a government. Under Louis XIV, the French national debt grew to unsustainable levels.
Private individuals or syndicates who paid the state a lump sum for the right to collect taxes in a particular region, keeping the surplus as their profit.
A term for the powerful private financiers who provided high-interest, short-term loans to the French crown.
A Scottish economist and financier who created a radical economic "System" in early 18th-century France to deal with its massive national debt.
The regent of France after the death of Louis XIV, who approved and supported John Law's financial experiment.
The total amount of money owed by a government.
Currency printed on paper, issued by a bank.
The joint-stock company created by John Law, granted a monopoly on trade with French Louisiana.
The total amount of money in circulation in an economy.
A modern central bank policy of increasing the money supply by purchasing government bonds and other securities.
A transaction in which the debt of a company or government is exchanged for an ownership stake (equity).
The practice of engaging in risky financial transactions in an attempt to profit from short-term fluctuations in the market value of an asset, rather than from its underlying value.
A significant increase in the amount of credit (loans and paper money) available in an economy, which can fuel economic booms and speculative bubbles.
The state-backed bank established by John Law in France, which issued the paper notes that fueled the credit expansion.
The powerful government title held by John Law, which gave him authority over the entire French economy.
A situation in which a large number of a bank's customers withdraw their deposits simultaneously due to concerns about the bank's solvency.
The spread of a market disturbance—often negative—from one financial entity to others, or from one country to others.
The state-backed bank established by John Law. Its failure was central to the crash.
To wind up the affairs of a failed company or bank by settling its debts and apportioning its remaining assets.
A renowned French Enlightenment writer and philosopher who observed and commented on the long-term social and cultural impact of the Mississippi Bubble.
A widespread public skepticism and fear of new financial instruments, like paper money or central banking, often caused by a previous financial crisis.
The collective belief and confidence that citizens have in the stability and integrity of their financial institutions and currency.
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