High inflation does reduce consumer confidence, but it doesn't cause consumers to spend less but instead to spend everything they have because not spending it means the money they have now will be the same amount tomorrow when everything will cost more. In places like Brazil when they had inflation as high as 1,000% a year, nobody held on to a single shred of currency because everything they earned at their job this week might not even be enough to buy a loaf of bread next week, resulting in everybody spending everything they had immediately--or try to convert the currency into as stable currency, like the US dollar, which Brazil made illegal because it was draining the Brazilian economy, which resulted in a black market for US dollars in Brazil.
High inflation rates don't make it more expensive to get a loan. In fact, when inflation rates surpass the agreed upon interest rate of your loan, you end up paying the lender back less than you borrowed. For example, if you borrow $10,000 at 10% APR interest for five years and then inflation jumps to, say, 17%, the purchasing power of that $10,000 plus 10% interest is going to be less than it was when you borrowed it. Meanwhile, with inflation everything goes up, including wages, so you actually end up with a discount on your loan. That's why lending confidence goes down in times of inflation. The financial markets freeze up because no lender is willing to lend money and risk that they'll end up getting repaid an amount that actually has less value, less spending power, than what was lent. This happened in the United States in the late 1970's.
The effect of high inflation on unemployment in the short-run depends on whether or not wages are keeping pace with the inflation rate in the short-run. In the long-run, they will, but they won't necessarily in the short-run, so it can't be said for sure what effect high inflation will have on unemployment in the short-run. Also, too low unemployment, unemployment rates that are below natural levels, are a cause of inflation, in fact the principle cause of a phenomenon called hyper-inflation when inflation spirals out of control at ever increasing rates. So take care not to confuse cause and effect when analyzing inflation in relation to unemployment.