There has to be a recognition of the virtue of industrial clusters and facilitation of associated facilities such as industrial training institutions, educational and health facilities. Many such activities can be supplied by the private sector but it is enlightened public management that can bring them about. We now have 35 million plus cities and about 400 cities with more than 100,000 population.
This is Ricardian equivalence in a slightly different context than examined by Robert Barro.17 Whether it applies in practice is an empirical issue, with empirical evidence from many papers written in the Fed and elsewhere suggesting a significant impact in the expected direction from quantitative easing actions undertaken by the Fed and other central banks.18  8. Money Supply versus Interest Rate.