Nations with higher levels of government debt relative to the size of their economies tend to suffer more following financial crises than countries with lower debt levels, finds a new study co-authored by economics professor Christina and David Romer. The study builds on their prior research, and helps explain the reasons for the discrepancy. "Countries should work to keep debt low as an insurance policy for future crises and to minimize market risks," they wrote. "But confronted with high financial distress, domestic policymakers and leaders of international organizations should not let debt loads drive the fiscal response unnecessarily. To do so leads to much worse post-crisis output losses."