Nobody Keeps the Float for Long: What Banks Learned in 1994, Merchants Are Learning Now

In early 1994, Adolpho Bloch, founder of Manchete magazine, wrote that in the system before the Plano Real, people earned money while sleeping and lost money while working because interest grew and multiplied like the miracle of the loaves. The taxa de over, or the overnight rate within which the short-term interbank/financial market operated, was at 63% a month, which he calculated to be around…