Macroeconomics: South Africa, 2nd Edition

This South African edition of Macroeconomics is essential reading for all students taking introductory economics modules on undergraduate courses throughout South Africa. It is also ideal for use with the macroeconomics component of MBA courses. The text contains updated case studies, set against a South African context to illustrate how the principles of economics relate to your life. The news articles are based on news events in South Africa along with questions to help you apply your knowledge and to build your understanding. This text is designed to give you the confidence and ability to think like an economist.

PART 1: Introduction to Economics
1 What is economics?
2 Thinking like an economist

PART 2: The data of macroeconomics
3 Measuring a nation’s well-being
4 Measuring the cost of living

PART 3 The real economy in the long run
5 Production and growth
6 Unemployment

PART 4 Interest rates, money and prices in the long run
7 Saving, investment and the financial system
8 The basic tools of finance
9 The monetary system
10 Money growth and inflation

PART 5 The macroeconomics of open economies
11 Open-economy macroeconomics: Basic concepts
12 A macroeconomics theory of the open economy

PART 6: Short-run economics fluctuations
13 Business cycles
14 Keynesian economics and IS-LM analysis
15 Aggregate demand and aggregate supply
16 The influence of monetary and fiscal policy on aggregate demand
17 The short-run trade-off between inflation and unemployment
18 Supply-side policies

PART 7 International macroeconomics
19 The Financial Crisis and sovereign debt
20 Trading blocs and common currency areas

• ‘In the News’ articles and case studies have been updated or rewritten to reflect modern approaches to economics in South Africa.
• Fully reviewed by local subject matter experts to ensure this edition is appropriate for students.
• New topics on the post-financial crisis world, causes of the financial crisis and feminist and Marxist economics have been added, making this one of the most comprehensive introductory texts available.

• Clear and simple writing style allows for ease of use and comprehension.
• Examples, case studies, and questions that relate to life in South Africa show students how concepts relate to their own lives.
• Relevant illustrations and photographs enhance content in context.

Gregory Mankiw
Harvard University

N. Gregory Mankiw is Professor of Economics at Harvard University. As a student, he studied economics at Princeton University and MIT. As a teacher, he has taught macroeconomics, microeconomics, statistics and principles of economics. Professor Mankiw is a prolific writer and a regular participant in academic and policy debates. His research includes work on price adjustment, consumer behaviour, financial markets, monetary and fiscal policy, and economic growth. His published articles have appeared in academic journals, such as the American Economic Review, Journal of Political Economy, and Quarterly Journal of Economics, and in more widely accessible forums, such as The New York Times, The Washington Post, The Wall Street Journal, and Fortune. In addition to his teaching, research, and writing, Professor Mankiw has been a research associate of the National Bureau of Economic Research, an adviser to the Federal Reserve Bank of Boston and the Congressional Budget Office, and a member of the ETS test development committee for the advanced placement exam in economics. From 2003 to 2005 he served as Chairman of the President's Council of Economic Advisers.

Mark P. Taylor
Dean of Olin Business School, Washington University, St. Louis

Mark P. Taylor is Dean of the John M Olin Business School at Washington University, US and was previously Dean of Warwick Business School at the University of Warwick, UK. He obtained his first degree in philosophy, politics and economics from Oxford University. He then worked as a foreign exchange dealer in London for two years while simultaneously studying part-time for a master’s degree in economics at London University, from where he also holds a doctorate in economics. Professor Taylor has taught economics at various universities (including Warwick, Oxford, Marseille and New York), at various levels (from principles courses to advanced graduate and MBA courses) and in various fields (including macroeconomics, microeconomics and econometrics). He also worked for several years as a senior economist at the International Monetary Fund and before that at the Bank of England. His work has been extensively published in scholarly journals, such as the Journal of Political Economy and the Economic Journal, and he is today one of the most highly cited economists in the world in economic research. In addition, Professor Taylor has acted as an advisor to the International Monetary Fund, the World Bank, the Bank of England, the European Commission and to senior members of the UK government. He is a research fellow of the Centre for Economic Policy Research, a member of council of the Royal Economic Society, and a fellow of both the Royal Statistical Society and the Royal Society of Arts.

Celeste Campher

Celeste Campher is a Lecturer at the Department of Economics at the University of the Free State. She currently lectures both Microeconomics and Macroeconomics at an undergraduate level and Research Methodology at post-graduate level. She has nearly 15 years lecturing experience, and also worked as a public servant in the Office of the Premier, and the Provincial Treasury in the Free State province. She is currently studying for her PhD, which is focused on the use of incentivised social discounting tasks to determine the association between social distance and time, risk and other preferences.

R. Ncwadi

RONNEY NCWADI is the first black academic to be appointed Head of Economics at Nelson Mandela University. Prior to that, he was a director in the Macroeconomic Analysis Unit of the Eastern Cape Provincial Treasury and Deputy Dean of the Faculty of Management and Commerce at Fort Hare University.