Another 1% Interest Rate Cut expected for next week -- a 20% cut in real terms.
Brazilians, due to their history of inflation, use real interest rates to measure the cost of money, something Americans and Europeans do not, and end up being "fooled by inflation".
Using inflated interest rates is part of this global crisis, since it causes monetary illusion, that is, excessive spending of interest earned.
The inflationary part of interest rates should always be saved, since it is not income, but capital depreciation.
Another reason Americans have such a low savings rate. They spend their nominal interest income, whilst Brazilians are more prudent and financially savy.
We save the inflation part and only spend the real interest rate.
That is why we call it REAL.
Another lesson which unfortunately the Roubinis and the Krugmans of the world have yet to learn.