This article will examine the recovery from a recession triggered by a financial crisis. A financial crisis puts considerable stress on the government’s budget, sometimes triggering attacks on public debt. Historical analysis shows that a private credit boom raises the odds of a financial crisis. Entering such a crisis with a swollen public debt may limit the government’s ability to respond and can result in a considerably slower recovery. This paper aims to highlight the importance of the influence and the interplay between public and private debt in financial crises.