This second edition of Understanding macroeconomics is a comprehensive revision and restructuring of the first edition, but still against a contemporary South African background. The major changes include the following: the chapter on money has been expanded and moved forward, and the material on the Keynesian model has been consolidated in two separate chapters, instead of being spread over different chapters. There is also a greater emphasis on the role of monetary and fiscal policy.

New topics include the role of the ratings agencies and the notion of “radical economic transformation”. As in the first edition, the easy style and practical examples make the content extremely accessible. A wealth of relevant information about the South African economy is also provided.

A companion to this book, Understanding microeconomics,

is also available.

Philip Mohr is a retired professor of economics.

Cecilia van Zyl is a senior lecturer in economics at the University of South Africa.

Anmar Pretorius is an associate professor of economics at North West University.