modern terms, what Law was attempting could be described as reflation. The French economy had been in recession in 1716 and Law's expansion of the money supply with banknotes clearly did provide a much-needed stimulus.52
In the early 18th century, the French economy was grappling with a recession. John Law’s innovative approach involved increasing the money supply through the introduction of banknotes, which aimed to invigorate economic activity. This monetary expansion provided the necessary boost to stimulate the sluggish economy, demonstrating a form of reflation intended to counteract economic stagnation.
Law’s efforts can be seen as a foundational move towards modern financial practices, recognizing the relationship...
