Too tough or too timid? Joe Biden's stimulus package feels the heat | Larry Elliott

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As Wall Street enjoys its hottest run in 17 years, economist debate the new president’s options

It’s fair to say that Wall Street usually takes little interest in debates between economists, even ones as distinguished as Larry Summers and Paul Krugman.

But the debate between the two Keynesians over the merits of Joe Biden’s stimulus package matters at a time when global stock markets are on their hottest run for 17 years. The mood has changed completely since fearful investors were piling into cash a year ago. The way the markets look at it, successful Covid vaccines plus low interest rates plus higher US government spending equals rapid growth and higher corporate profits.

Related: Central banks aren’t what they used to be – and the better for it

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