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From: "Josh Berkus" <josh@agliodbs.com>
Subject: Re: transaction in plpgsql
To: Joseph Syjuco <joseph@asti.dost.gov.ph>, pgsql-sql@postgresql.org
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Joseph,

> so does that mean that if i call function 2 from function 1 and
> function
> 2 fails than function 1 and function 2 rolls back
> 
> hopefully the answer is yes

That's correct.  To diagram:

Function 1 calls
 |
V
Function 2 calls
 |
V
Function 3, which fails
 |
V
Function 3 is rolled back
 |
V
Function 2 is rolled back
 |
V
Function 1 is rolled back


While this automatic tranactioning and "All succeed or fail together"
functionality is sometimes useful, its often also a major annoyance.
    Changing it is on the "todo" list, but poses some major technical
challenges.

-Josh Berkus