Jo, Look at the 10 yr Trsry yield.  It is 3.8% or so.  Even the official, watered down inflation rate is some 4.1%  Imagine getting 3.8% interest, then paying taxes on the interest and what are you left with?    No way you can counter actual inflation with interest rates like that.  No wonder people went into stocks, real-estate etc. in a desperate bid to earn enough money to beat inflation.  The rest is history.

-d