From the Dallas Fed:
All in the Family: The Close Connection Between Nominal-GDP Targeting and the Taylor Rule, by Evan F. Koenig: Abstract: The classic Taylor rule for adjusting the stance of monetary policy is formally a special case of nominal- gross-domestic-product (GDP) targeting. Suitably implemented, moreover, nominal-GDP targeting satisfies the definition of a "flexible inflation targeting" policy rule. However, nominal-GDP targeting would require more discipline from policymakers than some analysts think is realistic.
I've been asking this for some time now, but I viewed nominal GDP targeting as a special case of the Taylor rule (when the coefficients are set just right), but it's the other way around -- the Taylor rule is the special case:
Note that the Taylor rule is a special case of nominal-GDP targeting... The chief difference between the two policy approaches is that under nominal-GDP targeting, policymakers look at a longer history of price changes than they do under the Taylor rule when deciding on the appropriate policy setting. Secondarily, the estimate of potential output that enters the nominal-GDP-targeting rule is less sensitive to short-term supply shocks than is the estimate that enters the Taylor rule.
The last point about temporary supply shocks is important as I tried to emphasize here (the post talks about why policymakers should not respond to temporary supply shocks under a Taylor rule, I didn't mention nominal GDP targeting as a solution).
One might think that nominal-GDP targeting's ability to work around the zero-bound constraint would appeal to monetary policy doves and that its tighter control of inflation expectations would appeal to monetary policy hawks. Why hasn't nominal-GDP targeting received more widespread support? The main issue is credibility. Some analysts are concerned that future FOMCs may fail to follow through on promises of accommodation, while others fear that future FOMCs may back away from nominal-GDP targeting should it call for tighter policy than the current approach. To the extent that the public shares the former concern, an announced shift to nominal-GDP targeting would do little to accelerate the economy's recovery. To the extent that the public shares the latter concern, an announced shift to nominal-GDP targeting might be seen as a relaxation of the Federal Reserve's commitment to price stability rather than an enhancement to that commitment.