Economics 246

Intermediate Macroeconomic theory

This module takes a modern approach to intermediate macroeconomic theory, emphasising microeconomics foundations. It begins with the measurement of macroeconomic variables and contemporary issues, followed by key business cycle facts. A detailed exploration of consumer and firm behaviour leads to the development of one-period and two-period models, enabling analysis of policy questions like consumption-savings decisions and government interventions. These models are applied to real-world scenarios, such as the global financial crisis, alongside a labour market model with a focus on South Africa. The latter part of the module examines monetary policy and international finance, focusing on money, central banking, balance-of-payments, foreign-exchange markets and international capital mobility. Students explore global trade imbalances, financial crises, exchange rate regimes and the international monetary system. By completing this module, students gain the skills to analyse money, interest rates, exchange rates and open-economy dynamics, and to critically assess economic ideas and interpret global economic developments, particularly in the context of South Africa.

Prerequisite Pass modules (PP): Economics 114, Economics 144

Corequisite module (C): Economics 217

Credits: 16

Classes per week: 3 lectures 1 tutorial

Module convenor: Mr Hassan Essop 

Module Framework