The research done by Professors Reinhart and Rogoff, who analyzed the financial crisis, is worth noting.1 These two professors looked back at the episodes of serious financial crises in 14 countries after World War II, including the experience of the Japanese bubble, the Nordic banking crisis, and the Asian currency crisis.
They showed that per capita real GDP had declined from its peak to the bottom in almost two years. Furthermore, they showed that it had taken 4.4 years on average to recover the pre-crisis level of economic activity.