Study Guide
EKN 214 & EKN 234
Macroeconomics
Department of Economics
Tukkiewerf Building
University of Pretoria
Last Revision: February 2023
© Copyright reserved
© Outeursreg voorbehou
1.
INTRODUCTION
This study guide is designed for students who take the undergraduate intermediate
macroeconomics courses in the Department of Economics at the University of
Pretoria. Please read through all sections of this document carefully. Intermediate
macroeconomics as a whole is presented over the entire year, but administered as
two individual semester courses. EKN214 will be presented in the first semester and
EKN234 in the second semester. Details of the work to be covered in each semester
are shown in the course outline section. Students who wish to continue with
postgraduate studies in the Department should note that they also need to complete
the intermediate microeconomics courses presented at the second year level. Please
check your UP e-mail regularly and refer to ClickUP during the course of the year
for updated information, announcements and study material. All administrative
enquiries must be directed to the Department’s reception desk at (012) 420 2413
during office hours. The Department’s reception desk is located at the entrance of
the Tukkiewerf Building.
The content of the EKN214 and EKN234 courses cover a broad range of
macroeconomic topics, including national accounting, growth theory, inflation, labour
markets, business cycles, monetary and fiscal policy, trade and investment, and the
sustainable development goals (SDGs), amongst others. Note that a good command
of calculus and statistics will be required to master some parts of the work. Be
patient as the picture of macroeconomics unfolds throughout the year. We will
continuously build on our work and models to form a more complete and realistic
view of the world as we progress through each section, so do not worry if things seem
oversimplified at first. As you will hopefully come to appreciate, the simplicity of
some models serve a very useful purpose! It is also important to realise that we will
use many different models throughout the year, each designed for a specific purpose.
There is no single economic model capable of answering the myriad of questions that
the field of macroeconomics poses. Make sure you keep track of the different models
we use throughout the year and the features that make each of them appropriate for
the specific topic under investigation.
Macroeconomics is an incredibly important subject field, not just for commerce
students, but for all who wish to engage in public discourse. Economics as a science
provides us with many tools that help analyse the world around us with greater
clarity. Gaining a better understanding of the macro economy and its underlying
mechanisms is crucial to solving some of the biggest problems in society such as
optimal allocation of scarce resources, achieving sustainable growth and
development, and reducing inequality. Good luck for the year ahead and welcome to
the journey through macroeconomics!
Page | 1
2.
LECTURE TIMES AND VENUES
EKN214 lecture times and venues during the first semester are as follows:
Monday
Thursday
14:30 – 16:20
11:30 – 12:20
Large Chemistry Hall
Roos Hall
Double Session
Single Session
EKN234 lecture times and venues during the second semester are as follows:
To be confirmed prior to the start of the second semester, check online portal
Please refer to your timetable booklet for more information concerning recess dates
and lecture days on which other timetables will be followed. In general, we will try to
cover most of the theory from the textbook or important sections from economic
reports during the double session each week. Single sessions will mostly be used to
revise work. Occasionally, sessions may also be used for guest lectures or other
special topics. Please note that the work covered in such sessions will also be
examinable. Prof. Heinrich Bohlmann will be the course coordinator and main
lecturer for EKN214/234. His consultation hours are by appointment only. Contact
details for Prof. Bohlmann may be found on the Department’s website at
http://www.up.ac.za/en/economics/article/39728/staff
3.
CLASS PARTICIPATION
Attending lectures and participating in class is viewed as a must. Dialogue is not
only strongly encouraged, it is critical to your understanding of the material.
Remember, there is no such thing as a stupid question! Asking questions and
participating in class discussions often helps you to gain clarity on what you do and
do not understand. It also provides your lecturer with important feedback on areas
that we need to spend more time on. In order to make the most of your time during
lectures, I ask that you quickly scan through the material to be covered that day and
prepare as best you can for class; this encourages active listening and creates a more
productive learning environment.
Page | 2
4.
ASSESSMENT STRUCTURE
The final mark for EKN214 & EKN234 will be composed as follows:
Semester tests
Final examination
50% (25% each)
50%
Please note that, due to time constraints, the final mark for winter and summer
school courses may be determined differently. Details will be announced in class at
the start of the particular winter or summer school module, if and when presented.
5.



6.
OTHER CRITERIA AND ARRANGEMENTS
A sub–minimum mark of 40% in the semester is required to gain entry to the
final examination. A sub–minimum mark of 40% in the final examination and a
final mark of 50% are required to pass each course.
The final examination paper will cover all the prescribed material, lecture notes,
discussions and other topics covered in class, unless announced otherwise.
Please note that there will be no automatic supplementary examinations
granted for these subjects. Winter and summer school may be available to
students who need to repeat a subject. Students who miss the final exam for a
legitimate reason and qualify for a special exam must consult the Department’s
reception desk regarding the date on which the special exam will be written.
EVALUATIONS
Please read this section carefully. There are two scheduled semester tests, of which
you must write both. A third evaluation date will be available to those who missed a
test with legitimate reasons. For semester tests, these reasons must be submitted to
the lecturer electronically via email. Where appropriate, an affidavit should be
attached. No special arrangements can or will be made for students who miss two
semester tests. Students who miss the final examination due to a legitimate reason
should submit the appropriate documentation to Faculty Administration and consult
the Department’s reception desk regarding the date on which the special exam will
be written.
Page | 3
Evaluation dates and venues are available on your online UP Portal and will not be
published in this study guide. Dates and venues for the final examination will be
published by Faculty Administration on your UP Portal near the end of each
semester. Students must regularly check online for any announcements regarding
evaluation dates and venues as they are subject to change.
7.
PRESCRIBED MATERIAL
The following textbook is prescribed for both EKN214 & EKN234:

Macroeconomics, International Student Edition 5e by Charles Jones
The fifth edition of Jones’ Macroeconomics text, published by W.W. Norton, was
released in 2021. It is an excellent modern text covering all the major topics in
macroeconomics. We will use this text across both semester courses. Students are
expected to read through the relevant prescribed material before each learning unit.
The fourth edition of the text is still suitable for this course, but may feel a little
outdated with regard to the data and examples presented. It is important to note
that your prescribed text will not be the only examinable material for these courses.
Additional resources specifically referred to during lectures should also be studied.
Students are further encouraged to read and study from other newsworthy sources,
articles and books that will aid their understanding of macroeconomics. The
Economist magazine, Finweek magazine and the Business Day newspaper are great
easy-to-read and topical resources. Dani Rodrik’s Economics Rule is an excellent
non-technical read for those who wish to gain a better understanding of what
economists and their models do. Easterly’s The Elusive Quest for Growth, and
Acemoglu and Robinson’s Why National Fail and The Narrow Corridor are also
must-read books. We highly recommend these titles for all students, regardless of
their field of study. A selection of seminal journal articles and reports will also be
uploaded on ClickUP throughout the year to supplement sections of the work. These
and other resources that appear on the list of references are not directly examinable,
unless stated otherwise, but do serve to provide additional insight into key parts of
the work. The list also introduces students to some of the leading authors and top
international journals (AER, QJE, JPE) in the field of macroeconomics.
For serious students of economics, particularly those who plan to continue with
postgraduate studies, other textbooks such as Feenstra & Taylor’s International
Economics and Snowdon & Vane’s Modern Macroeconomics, as well as more
technical expositions such as Romer’s Advanced Macroeconomics are highly
Page | 4
recommended. Since most economics courses require at least some proficiency in
mathematics and statistics, we also recommend getting a copy of Renshaw’s Maths
for Economics in addition to enrolling for as many undergraduate math and stats
courses as possible. Sections of the work also require a good understanding of
microeconomics. In this regard, an intermediate microeconomics textbook such as
Perloff’s Microeconomics with Calculus will be a valuable resource.
8.
COURSE OUTLINE
The EKN214 and EKN234 modules combine to cover all the major topics in
macroeconomics. The first semester (EKN214) will typically include most of the
chapters in learning units one and two, and also some chapters from learning unit
three, time permitting. The second semester (EKN234) will include the rest of the
chapters in learning unit three and most chapters from learning unit four. In
addition to the chapters listed in these learning units, both courses will also include
additional content that are current and relevant to the study of macroeconomics,
particularly within a South African context. These topics will be announced and
presented in class when appropriate, and will be examinable. The scope of the final
exam will be determined at the end of each semester and announced on ClickUP.
Learning Unit 1 – Preliminaries
Chapter 1
Chapter 2
Introduction to Macroeconomics
Measuring the Macroeconomy
Learning unit one is a basic revision of macroeconomic concepts that were covered in
first year economics and will be considered as self-study for students. Chapter 1
discusses the broad questions that macroeconomists address and the economist’s
approach of building models to help explain the world. Chapter 2 discusses the data
and measurement of macroeconomic indicators in more detail, with a focus on
national income accounting. We also strongly encourage you to read the first chapter
of Dani Rodrik’s book, Economics Rule, to gain more insight into to what economists
and their models do.
Page | 5
Learning Unit 2 – The Long Run
Chapter
Chapter
Chapter
Chapter
Chapter
Chapter
3
4
5
6
7
8
An Overview of Long-Run Economic Growth
A Model of Production
The Solow Growth Model
Growth and Ideas
The Labour Market, Wages and Unemployment
Inflation
Learning unit two consists of six chapters and considers the macroeconomy in the
long run. Chapter 3 presents an overview of the facts and tools that economists use
to study long-run macroeconomics, with special attention to economic growth.
Chapter 4 introduces the Cobb-Douglas production function as a way to understand
the enormous differences in standards of living that we see across countries. The
interplay between theory and data that is central to macroeconomics makes a
starring appearance in this chapter. Chapter 5 considers the Solow model of
economic growth, one of the workhorse models of macroeconomics. We study the
extent to which the Solow model can help us understand why some countries are rich
while others are poor, and why people in the advanced economies of the world are so
much richer today than they were a hundred years ago. Somewhat to our surprise,
we will see that the basic model does not do a good job of explaining long-run
economic growth. For the explanation, we turn in Chapter 6 to the Romer model,
which emphasizes the role played in the discovery of new ideas. Thinking about the
economics of ideas leads to profound changes in the way we understand many areas
of economics. Chapters 5 and 6 also highlight the role of strong institutions in
facilitating long-term economic growth. Chapter 7 studies the most important
market in modern economics, the labour market. We learn about the determination
of the unemployment rate in the long run and discover that many readers of this
book are already, in some sense, millionaires. Chapter 8 concludes the long-run
portion of the book by considering inflation. The quantity theory of money provides
a long-run theory of inflation, which, according to Milton Friedman, occurs because
of “too much money chasing too few goods”.
Page | 6
Learning Unit 3 – The Short Run
Chapter
Chapter
Chapter
Chapter
Chapter
Chapter
Chapter
9
10
11
12
13
14
15
An Introduction to the Short Run
The Great Recession: A First Look
The IS Curve
Monetary Policy and the Phillips Curve
Stabilization Policy and the AS/AD Framework
The Great Recession and the Short-Run Model
DSGE Models: The Frontier of Business Cycle Research
Learning unit three consists of six chapters and is devoted to the branch of
macroeconomics that students are probably most familiar with: the study of booms,
recessions, and the rise and fall of inflation in the short run. As a result, our focus
will largely shift to the demand side of the economy. The six chapters form a tight
unit that develops our short-run model and applies it to current events. Chapter 9
provides an overview of the macroeconomy in the short run, summarizing the key
facts and providing an introduction to the short-run model that will explain these
facts. Chapter 10 provides a first look at the financial crisis and the Great Recession,
carefully laying out the facts of how the crisis evolved and introducing the important
concepts of “leverage” and “balance sheets”. The next three chapters then develop
the short-run model. Chapter 11 introduces the IS curve, a key building block of the
short-run model. The IS curve reveals that a fundamental determinant of output in
the short run is the real interest rate. Chapter 12 shows how the central bank in an
economy can move the interest rate in order to keep the economy close to full
employment. Chapter 12 also provides the link between the real economy and
inflation, called the Phillips curve. Chapter 13 looks at our short-run model in an
AS/AD framework. This framework allows the complete dynamics of the economy in
the short run to be studied in a single graph. Using this framework, the chapter
emphasizes the key roles played by expectations, credibility, and time consistency in
modern macroeconomic policymaking. Chapter 14 uses the short-run model to help
us understand the financial crisis and the Great Recession and discusses the
macroeconomic prospects going forward. Chapter 15 is the last chapter in this
section and synthesizes the analyses of the short run and the long run. The chapter
presents the new material on DSGE models of macroeconomic fluctuations to take
students closer to the frontier of advanced macroeconomics.
Page | 7
Learning Unit 4 – Applications and Microfoundations
Chapter
Chapter
Chapter
Chapter
Chapter
Chapter
16
17
18
19
20
21
Consumption
Investment
The Government and the Macroeconomy
International Trade
Exchange Rates and International Finance
Parting Thoughts
Learning unit four includes five chapters of applications and microfoundations and a
final concluding chapter. While it may be unapparent to the student new to
macroeconomics, the organization of these chapters follows the “national income
identity”, a concept discussed early in the book. These chapters include a number of
important topics. For example, Chapter 16 studies how individuals make their
lifetime consumption plans. Chapter 17 considers the pricing of financial assets, such
as stocks and houses, in the context of a broader chapter on investment. Chapter 18
studies the role played by government in the macroeconomy, including the role of
budget deficits and the government’s budget constraint. The chapter also considers a
key problem that governments around the world will face in coming decades: how to
finance the enormous increases in health spending that have occurred for the last fifty
years and that seem likely to continue. Both the long-run and short-run parts of the
book place the study of macroeconomics in international context. Indeed, the shortrun model includes open economy forces from the very beginning. The final two
applications of the book, however, go even farther in this direction. Chapter 19
focuses on international trade. Why do countries trade? Are trade deficits good or
bad? How have globalization and outsourcing affected the macroeconomy? Chapter 20
studies international finance, including the determination of the exchange rate and
the Euro-area financial crisis. Chapter 21 concludes our study of macroeconomics. We
summarize the important lessons learned in the book, and we offer a brief guide to the
key questions that remain less than well understood.
Certain chapters and topics in learning unit four will only be covered in class if time
allows. However, students are encouraged to look at and study all of these chapters as
it will deepen their understanding of macroeconomics and current political and
economic events around the world. In addition to the prescribed textbook material,
periodical publications such as the National Treasury’s Budget Review and MTBPS,
Statistics South Africa’s GDP and QLFS, the IMF’s Country Report and World
Economic Outlook, and other relevant policy documents will also form part of the
syllabus and will be discussed in class at the appropriate time. Other topics may be
added to learning units if deemed current and relevant to the study of
macroeconomics.
Page | 8
9.
ONLINE RESOURCES
Charles Jones Webpage
http://web.stanford.edu/~chadj/
University of Pretoria Library
http://www.library.up.ac.za
American Economic Association
http://www.aeaweb.org
Economic Society of South Africa
http://www.essa.org.za
National Treasury
http://www.treasury.gov.za
South African Reserve Bank
http://www.resbank.co.za
Statistics South Africa
http://www.statssa.gov.za
International Monetary Fund
http://www.imf.org
World Bank Group
http://www.worldbank.org
World Economic Forum
http://www.weforum.org
10. BOOK AND REPORT REFERENCES
Acemoglu, D. and Robinson, J.A. (2012) Why Nations Fail: The Origins of Power,
Prosperity, and Poverty. Crown Publishers.
Acemoglu, D. and Robinson, J.A. (2020) The Narrow Corridor: States, Societies,
and Fate of Liberty. Penguin Books.
Easterly, W.R. (2002) The Elusive Quest for Growth: Economists’ Adventures and
Misadventures in the Tropics. MIT Press.
Feenstra, R.C. and Taylor, A.M. (2017) International Economics 4e. Worth
Publishers.
Hayek, F.A. (1945) The Road to Serfdom, Condensed Version. Reader’s Digest.
Jones, C.I. (2020) Macroeconomics, International Student Edition 5e. W.W. Norton
& Company.
Perloff, J.M. (2017) Microeconomics: Theory and Applications with Calculus, Global
Edition 4e. Pearson Higher Education.
Page | 9
Pollin, R., Epstein, G., Heintz, J. and Ndikumana, L. (2006) An EmploymentTargeted Economic Program for South Africa. United Nations Development
Programme, New York.
Renshaw, G. (2016) Maths for Economics 4e. Oxford University Press.
Rodrik, D. (2015) Economics Rules: Why Economics Works, When It Fails, and
How to Tell the Difference. Oxford University Press.
Republic of South Africa (1996) The Constitution of the Republic of South Africa,
1996. Government Printer, Pretoria.
Republic of South Africa (2012) National Development Plan 2030. National Planning
Commission, Pretoria.
Snowdon, B. and Vane, H.R. (2005) Modern Macroeconomics: Its Origins,
Development and Current State. Edward Elgar Publishing.
World Bank (2000) Can Africa Claim the 21st Century? World Bank Group,
Washington, DC.
World Bank (2008) The Growth Report: Strategies for Sustained Growth and
Inclusive Development. On Behalf of the Commission on Growth and Development.
World Bank Group, Washington DC.
11. ACADEMIC JOURNAL REFERENCES
Acemoglu, D., Johnson, S. and Robinson, J.A. (2005) Institutions as a Fundamental
Cause of Long-Run Growth. Chapter 6 in the Handbook of Economic Growth,
Volume 1A. Philippe Aghion and Steven N. Durlauf (editors). North Holland,
Elsevier.
Acemoglu, D. and Restrepo, P. (2018) The Race Between Man and Machine:
Implications of Technology for Growth, Factor Shares and Employment. American
Economic Review, 108.
Acemoglu, D., Naidu, S., Restrepo, P. and Robinson, J.A. (2018) Democracy Does
Cause Growth. Journal of Political Economy, 126.
Alesina, A. and Giuliano, P. (2015) Culture and Institutions. Journal of Economic
Literature, 53(4) 898-944.
Page | 10
Alesina, A. and Passalacqua, A. (2016) The Political Economy of Government Debt.
Chapter 33 in the Handbook of Macroeconomics, Volume 2B. John B. Taylor and
Harald Uhlig (editors). North Holland, Elsevier.
Algan, Y. and Cahuc, P. (2014) Trust, Growth, and Well-Being: New Evidence and
Policy Implications. Chapter 2 in the Handbook of Economic Growth, Volume 2A.
Philippe Aghion and Steven N. Durlauf (editors). North Holland, Elsevier.
Atkinson, A.B. and Søgaard, J.E. (2016) The Long-Run History of Income Inequality
in Denmark. The Scandinavian Journal of Economics, 118(2) 264-291.
Andersen, T.B. and Dalgaard, C-J. (2011) Flows of People, Flows of Ideas, and the
Inequality of Nations. Journal of Economic Growth, 16(1) 1-32.
American Economic Review (2015) A Discussion of Thomas Piketty’s Capital in the
Twenty-First Century. American Economic Review, 105(5) 34-53.
American Economic Review (2015) Reflections on New Growth Theory. American
Economic Review, 105(5) 85-104.
Barro, R.J. (1986) Recent Developments in the Theory of Rules versus Discretion.
The Economic Journal, 96(384) 23-37.
Barro, R.J. (2015) Convergence and Modernisation. The Economic Journal, 125(585)
911-942.
Berg, A.G. and Ostry, J.D. (2017) Inequality and Unsustainable Growth: Two Sides
of the Same Coin? IMF Economic Review, 65(4) 792-815.
Brock, W.A. and Taylor, M.S. (2010) The Green Solow Model. Journal of Economic
Growth, 15(2) 127-153.
Caselli, F. and Feyrer, J. (2007) The Marginal Product of Capital. The Quarterly
Journal of Economics, 122(2) 487-534.
Csereklyei, Z., Rubio-Varas, M. and Stern, D.I. (2016) Energy and Economic
Growth: The Stylized Facts. The Energy Journal, 37(2) 223-255.
Deaton, A. (2010) Understanding the Mechanisms of Economic Development.
Journal of Economic Perspectives, 24(3) 3-16.
Page | 11
Dixon, P.B., Koopman, R.B. and Rimmer, M.T. (2013) The MONASH Style of
Computable General Equilibrium Modeling: A Framework for Practical Policy
Analysis. Chapter 2 in the Handbook of CGE Modeling. Peter B. Dixon and Dale W.
Jorgenson (editors). North Holland, Elsevier.
Economics of Transition (2008) A Symposium on Fostering Growth in South Africa.
Economics of Transition, 16(4) 583-797.
Farhi, E. and Gabaix, X. (2016) Rare Disasters and Exchange Rates. The Quarterly
Journal of Economics, 131(1) 1-52.
Fedderke, J. and Mengisteab, D.K. (2017) Estimating South Africa’s Output Gap
and Potential Growth Rate. South African Journal of Economics, 85(2) 161-177.
Friedman, M. (1968) The Role of Monetary Policy. American Economic Review,
58(1) 1-17.
Gordon, R.J. (2011) The History of the Phillips Curve: Consensus and Bifurcation.
Economica, 78(1) 10-50.
Hall, R.E. (2005) Employment Efficiency and Sticky Wages: Evidence from Flows in
the Labor Market. The Review of Economics and Statistics, 87(3) 397-407.
Hassler, J., Krusell, P. and Smith, A.A. (2016) Environmental Macroeconomics.
Chapter 24 in the Handbook of Macroeconomics, Volume 2B. John B. Taylor and
Harald Uhlig (editors). North Holland, Elsevier.
Journal of African Economies (2013) Institutions and African Economies. Journal of
African Economies, 22(4) 491-650.
Journal of African Economies (2017) Agriculture and Structural Transformation in
Africa. Journal of African Economies, 26 AERC Supplement 1.
Journal of African Economies (2018) Economic Structure, Growth, and Evolution of
Inequality and Poverty in Africa. Journal of African Economies, 27(1) 1-148.
Journal of Economic Perspectives (2015) Symposium on Wealth and Inequality.
Journal of Economic Perspectives, 29(1) 3-88.
Journal of Economic Perspectives (2015) Symposium on Automation and Labor
Markets. Journal of Economic Perspectives, 29(3) 3-60.
Page | 12
Journal of Economic Perspectives (2017) Symposium on Recent Ideas in
Econometrics. Journal of Economic Perspectives, 31(2) 3-144.
Journal of Economic Perspectives (2018) Symposium on Friedman’s Natural Rate
Hypothesis after 50 Years. Journal of Economic Perspectives, 32(1) 81-134.
Jones, C.I. and Romer, P.M. (2010) The New Kaldor Facts: Ideas, Institutions,
Population, and Human Capital. American Economic Journal: Macroeconomics, 2(1)
224-245.
Jones, C.I. (2016) The Facts of Economic Growth. Chapter 1 in the Handbook of
Macroeconomics, Volume 2A. John B. Taylor and Harald Uhlig (editors). North
Holland, Elsevier.
Jones, C.I. and Klenow, P.J. (2016) Beyond GDP? Welfare across Countries and
Time. American Economic Review, 106(9) 2426-2457.
Jones, C.I. (2016) Life and Growth. Journal of Political Economy, 124(2) 539-578.
King, M. (2017) Uncertainty and Large Swings in Activity. NBER Reporter, 2017
No. 3.
Landes, D.S. (1990) Why Are We So Rich and They So Poor? American Economic
Review, 80(2) 1-13.
Lange, O. (1936) On the Economic Theory of Socialism. The Review of Economic
Studies, 4(1) 53-76 & 4(2) 123-144.
Lindbeck, A. and Snower, D.J. (2001) Insiders versus Outsiders. Journal of Economic
Perspectives, 15(1) 165-188.
Lucas, R.E. (1976) Econometric Policy Evaluation: A Critique. Carnegie-Rochester
Conference Series on Public Policy, 1(1) 19-64.
Lucas, R.E. (1990) Why Doesn’t Capital Flow from Rich to Poor Countries.
American Economic Review, 80(2) 92-96.
Lucas, R.E. (1993) Making a Miracle. Econometrica, 61(2) 251-272.
Mankiw, N.G., Romer, D. and Weil, D.N. (1992) A Contribution to the Empirics of
Economic Growth. The Quarter Journal of Economics, 107(2) 407-437.
Mankiw, N.G., Weinzierl, M. and Yagan, D. (2009) Optimal Taxation in Theory and
Practice. Journal of Economic Perspective, 23(4) 147-174.
Page | 13
McCloskey, D.N. (1983) The Rhetoric of Economics. Journal of Economic Literature,
21(2) 481-517.
Mehlum, H., Moene, K. and Torvik, R. (2006) Institutions and the Resource Curse.
The Economic Journal, 116(508) 1-20.
Mortensen, D.T. and Nagypál, E. (2007) More on Unemployment and Vacancy
Fluctuations. Review of Economic Dynamics, 10(4) 327-347.
North, D.C. (1991) Institutions. Journal of Economic Perspectives, 5(1) 97-112.
Ng, Y-K. (2018) Ten Rules for Public Economic Policy. Economic Analysis and
Policy, 58(1) 32-42.
Obstfeld, M. (2012) Does the Current Account Still Matter? American Economic
Review, 102(3) 1-23.
Ogilvie, S. and Carus, A.W. (2014) Institutions and Economic Growth in Historical
Perspective. Chapter 8 in the Handbook of Economic Growth, Volume 2A. Philippe
Aghion and Steven N. Durlauf (editors). North Holland, Elsevier.
Oxford Review of Economic Policy (2007) The 50th Anniversary of the Solow Growth
Model. Oxford Review of Economic Policy, 23(1) 1-133.
Oxford Review of Economic Policy (2018) Rebuilding Macroeconomic Theory.
Oxford Review of Economic Policy, 34(1-2) 1-347.
Phelps, E.S. (1965) Second Essay on the Golden Rule of Accumulation. American
Economic Review, 55(4) 793-814.
Pozuelo, J.R., Slipowitz, A. and Vuletin, G. (2016) Democracy Does Not Cause
Growth: The Importance of Endogeneity Arguments. IBD Working Paper 694.
Prescott, E.C. (2016) RBC Methodology and the Development of Aggregate
Economic Theory. Chapter 22 in the Handbook of Macroeconomics, Volume 2B.
John B. Taylor and Harald Uhlig (editors). North Holland, Elsevier.
Rogerson, R., Shimer, R. and Wright, R. (2005) Search-Theoretic Models of the
Labor Market: A Survey. Journal of Economic Literature, 43(4) 959-988.
Romer, P.M. (1986) Increasing Returns and Long-Run Growth. Journal of Political
Economy, 94(5) 1002-1037.
Page | 14
Sen, A. (1993) Markets and Freedoms: Achievements and Limitations of the Market
Mechanism in Promoting Individual Freedoms. Oxford Economic Papers, 45(4) 519541.
Solow, R.M. (1956) A Contribution to the Theory of Economic Growth. The
Quarterly Journal of Economics, 70(1) 65-94.
South African Reserve Bank (2015) Fourteen Years of Inflation Targeting in South
Africa and the Challenge of a Changing Mandate. South African Reserve Bank
Conference Series 2014.
Stigler, G.J. (1975) The Goals of Economic Policy. Journal of Law and Economics,
18(2) 283-292.
Taylor, A.M. and Taylor, M.P. (2004) The Purchasing Power Debate. Journal of
Economic Perspectives, 18(4) 135-158.
Thaler, R.H. (2016) Behavioral Economics: Past, Present, and Future. American
Economic Review, 106(7) 1577-1600.
Tol, R.S.J. (2018) The Economic Impacts of Climate Change. Review of
Environmental Economics and Policy, 12(1) 4-25.
Yao, Y. (2014) The Chinese Growth Miracle. Chapter 7 in the Handbook of
Economic Growth, Volume 2A. Philippe Aghion and Steven N. Durlauf (editors).
North Holland, Elsevier.
12. ADDITIONAL NOTES
In addition to completing the intermediate macroeconomics (EKN214 & EKN234)
courses described in this study guide, successfully completing the intermediate
microeconomics (EKN224 & EKN244) courses will also be required for students who
wish to continue with a postgraduate degree in the Department of Economics. Please
consult the Department’s reception desk for complete information regarding the
application process for postgraduate study.
Tutors will be available throughout the semester for consultation. Tutor offices are
located through the side entrance of the Tukkiewerf building. Please refer to ClickUP
or visit the Department’s reception desk for more information on tutor availabilities.
Queries regarding semester test marks should also first be directed to the tutors
during their office hours.
Page | 15
13. COMMUNICATION WITH EMS STUDENTS
All emails from the Faculty of Economic and Management Sciences and Department
of Economics will be sent to you at your registered University of Pretoria student
email address. Announcements relating specifically to this module will be posted on
ClickUP. It will be assumed that any communication sent to your UP email address
or posted on ClickUP will be read by you in a timely manner. The EMS Faculty
advises that you check your email address and ClickUP at least twice a day, ideally
in the morning and again before the close of business.
14. RULES OF CONDUCT FOR EMS STUDENTS
Students in the EMS Faculty are likely move into the business world once they have
completed their studies at the University of Pretoria. As part of delivering wellrounded students to the job market, it is important that UP students refine certain
attributes that are deemed to be part of the make-up of any successful business
person. Where feasible, a number of these attributes need to be instilled by staff
members, by consistently applying the same administrative and other rules when
dealing with students. As these rules of conduct are deemed to form part of learners’
guides, it is assumed that all students are aware of these and ignorance will thus not
be accepted as an excuse.
Conduct Rules (GA = graduate attribute expected of EMS students)




Professional conduct and manners are expected when interacting with your
lecturers in person, by e-mail or by telephone. GA: Communicate well in
diverse social, cultural, geographical and workplace contexts using appropriate
language (oral, written and listening)
Professional conduct and ethical conduct are expected when liaising with
outside stakeholders related to your academic programme. GA: Have a sense
of social responsibility by behaving ethically and with integrity
Please respect the consulting hours of lecturers and the time of your fellow
students when consulting with lecturers on a one-on-one basis or in class.
GA: Demonstrate inter-personal skills by interacting constructively
All correspondence (e-mail or otherwise) with the HODs and lecturers, must
be done in an appropriate format and tone. If not, the correspondence will be
returned unanswered marked “format” or “tone”. Queries will thus not be
attended to, unless the format and/or tone of the correspondence are at an
Page | 16






acceptable professional standard. GA: Communicate well in diverse social,
cultural, geographical and workplace contexts using appropriate language
(oral, writing and listening)
Students shall not be late for class, unless there is a valid reason for their
being late. Being late for a lecture indicates a lack of respect for the lecturer
and fellow students. In addition, students who have to leave a lecture period
before the end of the lecture should advise the relevant lecturer before the
lecture commences that they will be leaving early.
GA: Functioning
autonomously and confidently as individuals demonstrating time management
in own decision-making
Students’ mobile phones should be switched off and out of sight during
lectures, unless these are used as part of the blended learning interventions.
GA: Demonstrate inter-personal skills by interacting constructively
Students are discouraged from misusing the procedures associated with sick
notes. Nevertheless, when appropriate, they are expected to hand in a sick
note application form together with the required supporting documentation at
the relevant department. The associated application form must be filled out in
its entirety and if not, sick notes will not be accepted and a zero mark will be
awarded for the relevant test or assignment. GA: Have a sense of social
responsibility by behaving ethically and with integrity
Sick note application forms and associated documentation must be handed in
within three working days from the date of the test that was missed. Public
holidays, Saturdays, Sundays and official university recess days during a
semester are not counted as working days. Late submissions will not be
accepted and a zero mark will be awarded for the relevant test. GA:
Functioning autonomously and confidently as individuals demonstrating time
management in own decision-making
To counter unethical behaviour, sick notes received will be validated by
confirming their authenticity with the issuing medical practitioner. If students
are identified as having submitted fraudulent sick notes, they will be handed
over to the university authorities for disciplinary action which could lead to
expulsion. GA: Have a sense of social responsibility by behaving ethically
and with integrity
Students are expected to consider the resubmission of tests for additional
marks carefully and are expected to fill out the associated forms in their
entirety and hand these in, accompanied by the relevant test.
Questions/answer books will be remarked in their entirety when handed in
and students could consequently lose marks previously awarded, when the
entire book is remarked. GA: Functioning autonomously and confidently as
individuals taking responsibility for their own decisions and development
Page | 17



Fraudulent amendments to tests and examinations will not be tolerated and
students guilty of this will be handed over to the university authorities for
disciplinary action which could lead to expulsion or suspension of credits for a
specific module.
GA: Functioning autonomously and confidently as
individuals taking responsibility for their own decisions and development and
Have a sense of social responsibility by behaving ethically and with integrity
All tests handed in for remarking must be handed in within three working
days of the date on which the tests were made available or handed back in
class and must be accompanied by the associated form. Public holidays,
Saturdays, Sundays and official university recess days during a semester are
not counted as working days. Applications for a remark will not be considered
if handed in after the deadline specified by the lecturers. GA: Functioning
autonomously and confidently as individuals demonstrating time management
in own decision-making
All assignments must be handed in on time. If not, assignments will not be
marked and students will receive a zero mark for assignments that were
handed in late.
GA: Functioning autonomously and confidently as
individuals demonstrating time management in own decision-making
Page | 18