hm, so there is this country, facing a declining currency, rising inflation, turmoil in the stock market with large fluctuations in key indices on short terms, real estate market bubble that looks like it might be popping, and concern that risk perception is leading to an acute credit crunch
so... the central bank calls an emergency meeting and does what one should, as they have done before (though never quite so drastically)
Iceland raises interest rates to 15%
inflation is driven by increasing commodity costs and devaluing currency, although, unlike the US, Iceland is seeing some wage inflation to compensate
action worked, for now
Interesting times, eh? Of course, what we have (as a commodity exporter) is a very strong currency with high inflation, but without (so far) rising wages.