Macroeconomics 214

Chapter 0:
Introductory lecture
LNIEUW@sun.ac.za
Hassan Essop
Admin
• Language
• Read the Course Outline
Available on SUNLearn
• Slides available on SunLearn
Slides in class may have slight deviations
• Tutorials
• Can have random class tests/assignments for rollcall
Not for formal assessment purposes
• Come to lectures prepared
The prescribed book for this course is:
Macroeconomics
Global Edition (6th ed)
Stephen D. Williamson
What is macroeconomics about?
• Study of society as a whole
• Why do we have
unemployment, what causes
recessions, effects of a budget
deficit, etc.
• But we need a method to
understand the macro-
economy
• With a strong base we can start
analysing other issues
• This course is a starting point
We need a model

• Williamson builds model from microfoundations

Consumer and firm behaviour matters
• Models built to explain macroeconomic phenomena.
• The important phenomena are long-run growth and
business cycles.
• Growth theory is about the LR growth rate of an economy.
• SR and MR fluctuations analyses the trend (business cycle
theory).
Growth theory vs. business cycle theory

log(Y)
LR trend

SR / MR fluctuations

time
Business cycle theory

log(Y)
People prefer an economy without too much fluctuation,
therefore economists study stabilisation policy.

tyd
How We Got to Where We Are Now
South African GDP per capita, 1960 – 2020 ($)
Business cycle in South Africa
Global Business cycle Map

https://www.economy.com/economicview/tracker/5/Global-Business-Cycle-Map
Getting economic data?
• World Bank
• OECD
• International Financial Statistics (IFS),
published by the International Monetary
Fund (IMF).
• SA Reserve Bank
• Statistics SA
Translation of amounts:

Amount English (US) English (UK)

1 000 000 million million
1 000 000 000 billion milliard
1 000 000 000 000 trillion billion
 Makro-ekonomie 214
Hoofstuk 0:
inleidende lesing
LNIEUW@sun.ac.za
Hassan Essop
Admin
• Lees die KURSUSRAAMWERK
Beskikbaar op SUNLearn
• Skyfies beskikbaar op SUNLearn
• Tutoriale
• Kom voorbereid na lesings
• Sal van tyd tot tyd klas toetse en opdragte moet voltooi vir
klasbywoningsregister
Nie vir formele assessering nie.
Die voorgeskrewe handboek vir die
kursus:
Macroeconomics: Global
and Southern African
Perspectives
Stephen D. Williamson
Waarna kyk ons met makro-ekonomie?

• Bestudeer samelewing as
geheel
• Waarom het ons
werkloosheid, wat veroorsaak
resessies, wat is die effect van
‘n begrotingstekort, ens.
• Maar ons het ‘n metode nodig
om die makroekonomie te
verstaan.
• Met ‘n sterk basis kan ons
ander vraagstukke analiseer
• Hierdie kursus is ‘n beginpunt.
Ons het ‘n model nodig

• Williamson bou model vanaf mikro beginsels

Verbruiker en firma gedrag maak saak
• Modele word ontwikkel om makro-ekonomiese
verskynsels te verduidelik.
• Die belangrike verskuinsels is langtermyn
ekonomiese groei en besigheidsiklusse.
• Groei-teorie handel oor LT groeikoers in ekonomie.
• Makro 214 fokus op KT en MT fluktuasies rondom
tendens (sakesiklus-teorie).
Hoe Ons Hier Gekom Het
Groei- teenoor sakesiklusteorie

log(Y)
LT tendens

KT / MT fluktuasies

time
Sakesiklusteorie

Mense verkies ‘n ekonomie met min wisselvalligheid,

log(Y) en daarom bestudeer ekonomie stabilisasiebeleid.

tyd
BBP per kapita in Suid-Afrika
Sakesiklus in Suid-Afrika
Sakesiklus – die Wêreld

https://www.economy.com/economicview/tracker/5/Global-Business-Cycle-Map
Waar kan jy ekonomiese data bekom?
• World Bank
• OECD
• International Financial Statistics (IFS),
gepubliseer deur die International Monetary
Fund (IMF).
• SA Reserwebank
• Statistiek SA
Vertaling van bedrae:

Bedrag Engels (VSA) Afrikaans

1 000 000 million miljoen
1 000 000 000 billion miljard
1 000 000 000 000 trillion biljoen