The only aspect of Friedman’s 1970 framework that does not fit entirely with the current conventional wisdom is the monetarists’ use of money growth as the primary indicator or measure of the stance of monetary policy. Clearly, monetary policy works in the first instance by affecting the supply of bank reserves and the monetary base.
The effects of the disaster clearly spread beyond the disaster areas across the country in various forms. One example of this is the decline in operating rates of nuclear power plants. I am aware that, especially in the Kansai region, electricity supply and demand conditions are likely to be tight in the coming winter.