The result is that when large scale infrastructure projects are undertaken, many of the skills have to be imported. Germany is one of the few developed countries to maintain a globally competitive manufacturing sector.
In principle, these instruments allow for insuring, pooling and spreading of idiosyncratic credit risk, and so for a long period they were hailed as top examples of how financial innovation can contribute to real economic activity. However, as Figures 10 and 11 show, the enormous jump in their issuance should, in hindsight, have been viewed more cautiously.