Joe Weisenthal — Robert Shiller: Forget Bitcoin, Here's The Real Way Technology Can

Shiller has three inter-related ideas, and surprisingly they all spring forth from something that Chile did in the 1960s, when it created a quasi-currency called the UF that was designed to track inflation. If inflation rapidly accelerated, the UF would become more valuable against the Chilean Peso, allowing UF holders to maintain buying power. Goods (like one's rent check) could be priced in UF, so that the price could stay the same all the time, automatically adjusting with inflation.

Shiller proposes three ideas: First he thinks that other countries should adopt digital versions of the UF. He proposes calling them "baskets" reflecting the fact that their value will track a basket of goods. Then he suggests companies like Square and PayPal (at the forefront of digital money) should allow for automatic payments in these baskets, even across boarders, automatically adjusting for different currencies, etc.. And finally he proposes the creation of multiple baskets in each country, so that there could be one that reflects the needs of senior citizens (who buy different stuff than young people) and one that reflects young homeowners and so forth.

Business Insider
Robert Shiller: Forget Bitcoin, Here's The Real Way Technology Can
Joe Weisenthal