As the two strode on to the stage, Palin greeted Biden, saying: "Nice to meet you. Can I call you Joe?"
Opening their only vice presidential debate ahead of the November 4 election, Biden said McCain had called the fundamentals of the economy strong as the Wall Street crisis broke out.
"It does point out he's out of touch," Biden, a Delaware senator, said on the campus of Washington University in St. Louis, Missouri.
Palin, the governor of Alaska, said McCain was talking about the American workforce and said Democratic presidential candidate Barack Obama would raise taxes and hurt, not help, American workers.
"Americans are craving something new and different," she said.
The highly anticipated match-up promised more than the usual drama, most of it supplied by Palin's debut in an unscripted format.
The encounter could draw a larger television audience than the 52 million who watched last week's first debate between the presidential candidates -- Republican McCain and Democrat Barack Obama.
Palin hoped a solid debate performance could help slow Obama's momentum. He has solidified his lead in national opinion polls and grabbed an advantage in crucial state battlegrounds like Florida and Ohio.
McCain's surprise choice in August of the relatively unknown Palin as his No. 2 rallied conservative support for the Republican ticket and turned the moose-hunting Alaska governor into a political celebrity.
But her lack of national experience and her hesitant performance in rare media interviews have raised doubts about her readiness and prompted criticism even from some prominent conservatives.
