Debt and deleveraging: The global credit bubble and its economic consequences | McKinsey Global Institute

Empirically, a long period of deleveraging nearly always follows a major financial crisis. Deleveraging episodes are painful, lasting six to seven years on average and reducing the ratio of debt to GDP by 25 percent. GDP typically contracts during the first several years and then recovers.

via Debt and deleveraging: The global credit bubble and its economic consequences | McKinsey Global Institute | Financial Markets | McKinsey & Company.