My understanding is that the market monetarists prefer some kind of a monetary rule to be followed, preferably automatically, via the usage of futures markets. In the PSST story, what is the preferred monetary policy/monetary rule?

PSST appears to account for some of this. Animal spirits and balance sheet limits may account for more. But the key thing is that in the end, there’s a maximum possible effect the fed, or for that matter fiscal policy, can possibly have.

I now tend to think that the Fed has a much larger problem with the limits of the scope of its influence than with having ammunition to apply to said scope.