Kevin Drum explains nonstandard monetary policy very well.
I make my usual comment.
What the Fed does in normal times is target the Federal Funds extremely short term interest rate. Your explanation of how nominal GDP targeting works doesn't have anything to do with nominal GDP targeting. I think the problem is that you understand the issue better than most advocates of nominal GDP targeting (I guess Woodford probably understands it as well as you do but not better (non irony alert: I really think this -- the issue isn't so complicated that you are missing anything -- at all)