Spring – @Transactional – What happens in background?

I want to know what actually happens when you annotate a method with @Transactional?
Of course, I know that Spring will wrap that method in a Transaction.

But, I have the following doubts:

  1. I heard that Spring creates a proxy class? Can someone explain this in more depth. What actually resides in that proxy class? What happens to the actual class? And how can I see Spring’s created proxied class
  2. I also read in Spring docs that:

Note: Since this mechanism is based on proxies, only ‘external’ method calls coming in through the proxy will be intercepted. This means that ‘self-invocation’, i.e. a method within the target object calling some other method of the target object, won’t lead to an actual transaction at runtime even if the invoked method is marked with @Transactional!

Source: http://static.springsource.org/spring/docs/2.0.x/reference/transaction.html

Why only external method calls will be under Transaction and not the self-invocation methods?

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