It’s still with us. Article by George F. Smith.

Excerpt:

John Law, the early eighteenth-century Scottish gambler and financier, thought the best way to revive an ailing economy was to remove the “great scarcity of money,” as he wrote in a 1705 monetary tract. A decade after its publication he took his ideas to the Continent and sold them to Philippe d’Orleans, the regent in charge of France’s finances, who needed a scheme more sophisticated than his failed program of coin clipping and confiscation to save the nation from bankruptcy.

In 1716 Philippe set Law up as head of the Banque Générale, the country’s central bank, giving it and him monopoly control of the note issue. Having won the nation’s trust with declarations of allegiance to sound money principles – he had promised his banknotes would be “payable on sight” in unadulterated gold coin – Law proceeded to apply another element of his theory. Because a scarcity of money, he believed, was the root of France’s economic problems, and since banknotes backed purely by precious metals would be in short supply, he began issuing notes “backed” by the nation’s vast landholdings. Exactly how one would redeem banknotes for acreage he neglected to explain.

Is John Law regarded as a charlatan today? Not whatsoever. The most influential economists of modern times regard Law with sympathy and respect. One eminent economic historian places Law in the “front ranks of monetary theorists of all time.” Others view him jealously for being the first economist to run an entire country, even if it meant running it into the ground.

Saint-Simon concluded,

[T]he chimera of the Mississippi, with its shares, its special jargon, its science (a continual juggle for drawing money from one person to give it to another), was to almost guarantee that these shares should at last end in smoke (since we had neither mines, nor quarries of the philosopher’s stone), and that the few would be enriched at the expense of the many, as in fact happened.

The allure of easy money drives irrational behavior, then and now.  End the Fed.