Iceland's Inflation Has a Culprit — And It Isn't the One the Central Bank Is Chasing

Iceland's headline CPI has been stuck above target for almost four years. Everyone has a theory. The central bank says expectations have deanchored. The opposition says the government spent too much. The populists say the immigrants drove up costs. The landlords say the unions are too demanding. The unions say the rents are too high. Each diagnosis arrives with its preferred treatment already in…