A couple of bank failures would take care of their inflation problem.
Well, as we have only about 3 (to four as many of the little saving funds in the countrieside are merging into the biggest one of that), banks in total, we couldn´t live through a couple of banking failures. We have allways had an inflation problem, and today it is peanuts compared to before our conservatives hero Mr. Davíð Oddson came and did a Reagan/Thatcher on the economy.
I recommend you all to study our system and what we have done, even though we are small (and thus a good test case/labrotory) many nations could learn from us.
Just the other day the economist Mr. Arthur B. Laffer was visiting us, as we are a great proof of his Laffer curve effect, that is, lowering taxes, surprise surprise, we get more tax revenues.