The consequences of the Volcker disinflation demonstrated that when Volcker announced his intention to reduce inflation quickly,on average the public thought

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The Volcker disinflation involved the Federal Reserve significantly increasing interest rates to combat inflation. When Volcker announced his intention to reduce inflation quickly, the public was skeptical and believed that inflation would fall, but not by as much or as quickly as Volcker claimed. This was because past attempts to reduce inflation had been unsuccessful, so the public was unsure if the Fed would follow through on their actions or if they could actually have a significant impact on inflation. As it turned out, the Fed was able to successfully reduce inflation, but at a cost of a deep recession in the early 1980s.

The Consequences of the Volcker Disinflation Demonstrated That When Volcker