A history lesson for modern central bankers

Three hundred years ago, France embarked on a scheme to boost economic growth and lower interest rates with printed money. Sound familiar?

Three hundred years ago, France embarked on a scheme to boost economic growth and lower interest rates with printed money. Sound familiar?

This year marks the 300th anniversary of the start of an economic project in France, which posterity knows as the Mississippi Bubble. The brainchild of expatriate Scot John Law, the scheme had been hailed as the most ambitious economic experiment prior to the establishment of the Soviet Union in 1917. Like Lenin's creation, the short-lived Mississippi Bubble eventually collapsed in a spectacular fashion. Central bankers around the world are currently on a mission not altogether different from Law's, making lessons revealed by his failure particularly relevant today.

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Edward Chancellor

Edward specialises in business and finance and he regularly contributes to the MoneyWeek regarding the global economy during the pre, during and post-pandemic, plus he reports on the global stock market on occasion. 

Edward has written for many reputable publications such as The New York Times, Financial Times, The Wall Street Journal, Yahoo, The Spectator and he is currently a columnist for Reuters Breakingviews. He is also a financial historian and investment strategist with a first-class honours degree from Trinity College, Cambridge. 

Edward received a George Polk Award in 2008 for financial reporting for his article “Ponzi Nation” in Institutional Investor magazine. He is also a book writer, his latest book being The Price of Time, which was longlisted for the FT 2022 Business Book of the Year.