Most of the recent increases in productivity have been reflected in a sharp rise in the pretax profits of nonfinancial corporations from a very low 7 percent share of that sector’s gross value added in the third quarter of 2001 to a high 12 percent share in the fourth quarter of last year.
It appears that, at least in Germany, consumers value the existing diversity of payment options. Cash continues to be an important part of this. In the bank-centred financial system in Germany, commercial banks are a major actor in the provision of a payment infrastructure that can cater for both cash and its digital alternatives. Retailing in Germany is transforming, too.