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 between money supply and economic vitality. His actions were pivotal in revitalizing the French economy during a critical period, highlighting the significance of monetary policy in managing economic challenges.