The debate around the economy’s need for Biden’s $1.9tn American Rescue Plan (ARP) is heating up. A few prominent economists recently argued that while relief funding is important and some stimulus is needed, the package could lead to spiraling inflation, financial market instability, and reduced fiscal space for further stimulus. We disagree on all three fronts. Instead, we see strong reasons why the dire outlook and fear of the unknown are overstated.
What you will learn from this report: