CHRONICLE – Revolutionary financial innovations conducive to scandals.
All schoolchildren in France and Navarre know, at least by name, John Law. You have to pronounce “Lass” insisted our teachers, because that’s what the French called it three centuries ago. This economist and banker fromScotland remained in the annals for having tried to introduce in France a system of paper money instead of precious metals, or and money. Such a revolution has nothing to envy to our staggering cryptocurrencies. What, it was hoped, would break the double curse from which the country suffered, monetary crisis (insufficient liquidity) and financial crisis (gigantic public debt at the death of Louis XIV in 1715). The project launched under the Regency of Philippe d’Orléans unfortunately failed, ending in 1720 with Law’s Bankruptcytitle of the cult book by Edgar Faure, emblematic minister of the IVe et of the Ve Republic.
The latter nevertheless considers John Law as “the founder of the monetary economy, the most original minister in French history