The experiment of John Law 

 L'enseigne de Gersaint (Watteau). On the left, the paintings, marked by the somber final years of Louis XIV, are put in crates. On the right, the go go years are coming. (photo C. Chamley)

"The count of Stair, british ambassador, following the genius of his nation, placed a bet that the king would not pass the end of September," (Voltaire, The Century of Louis XIV

["Le comte de Stair, ambassadeur d'Angleterre, paria, selon le génie de sa nation, que le roi ne passerait pas le mois de septembre," (VoltaireLe Siècle de Louis XIV).]

Required reading

A excellent and very well written introduction to John Law is from John W. Adams, past president of the Numismatic Bibliomania Society: 

  • "John Law, Larger than Life", The Medals Concerning John Law and the Mississippi System, p. 2-17.

For the following readings, follow the instructions on the slides that were distributed in class.

  • John Law (1705). Money and Trade, chapter 7, instructions in the slides.

Other readings

  • Cochrane, John H. (2001). Review of Famous First Bubbles: The Fundamentals of Early Manias by Peter M. Garber, The Journal of Political Economy, 109, 1150-1154.
  • Garber, P. (1990). "Famous First Bubbles," Journal of Economic Perspectives, 4, 35-54
  • Murphy, Antoin (1997). John Law, Economic Theorist and Policy Maker, preview (content+about 60 pages)

 You might have a laught watching an animation movie (about 10 minutes).  The movie picks a only a few elements but there is in my view, no serious mistake. It is easy to make people at the time stupid, but laughing may help you memorize a few facts.