Part 4/9:
With the death of Louis XIV in 1715, a power vacuum emerged in France as the country was ruled by a regency council while the young King Louis XV was still a child. Amidst this turmoil, the financially beleaguered state needed innovative solutions to overcome Louis XIV’s legacy of debt.
Law’s relationship with Philippe II, Duke of Orleans, led to renewed interest in his financial theories. With the Duke's backing, Law established the Banque Générale in 1716, converting it into the Banque Royale, which would effectively act as France's central bank. Law initiated the use of paper currency, promising convertibility and higher returns compared to traditional gold and silver coins.