In sum, we have no reason to regard the performance of the US economy under President Obama as poor, given the conditions he inherited. But this does not mean that recovery could not have been far stronger. Policy was insufficiently supportive of a stronger recovery. That is partly because the administration underestimated the forces for contraction. It is still more because of the opposition of the Republicans to any stimulus. In an economy afflicted by the implosion of a huge credit boom, the forces for contraction were bound to be both strong and enduring. With interest rates at zero, the effectiveness of monetary policy was limited. Given this, the American Recovery and Reinvestment Act, which amounted to an average of a little under 2 per cent of GDP in the years it was effective, was plainly too small.