Real Bills Doctrine, Richard Timberlake conclusion

garagemc posted on Wed, Apr 15 2009 5:29 PM

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If any of you have read this:

http://blog.mises.org/archives/003914.asp

Richard timberlakes view that the Great Depression was caused by following the Real Bills Doctrine (RBD). 

Am I correct in saying the following then:

If RBD had not been followed, then the Fed would have been able to pump money into the market and prevent the depression from happening much like it did in the Asian Financial Crisis. Is this what timberlake is essentially trying to say?

My counter arguement would be that this would prevent the liquidation of malinvestment, and simply delay the agony.  

Or have I completely gone off track and jumped the bridge? Richard Timberlake's paper is quite complicated as I still cannot completely grasp what the aim of RBD is and how it does it.