In China, for example, the share of population of working age has been rising quickly up to now. But between 2010 and 2050, it is expected to decline more quickly than in the United States, and by about the same as in Germany. 6  In theory, ageing can in some circumstances produce lower saving rates.
Indeed, by taking risk, or acting as an intermediary in transferring risk, the financial industry fulfils a role that has been and continues to be vital for economic growth. It is fair to say, however, that the process of risk management is becoming increasingly quantitative. Turning to derivatives, this is also not a recent innovation.