"A big reason why the Icelandic crisis was milder than initially feared was because fortunately the government failed to borrow. The Irish were not as lucky. By contrast, the Icelanders were much less fortunate with their monetary policy and Central Bank. The Central Bank of Iceland had, and probably still has, a fanatical belief in inflation targeting. The monetary models told them that higher interest rates would lead to lower inflation. When the data indicated otherwise they persistent in maintaining the models had to be right."
Jón Daníelsson, professor vid London School of Economics, i ett blogginlägg om skillnaden mellan Island och Irland.