Canada as an entity barely survived the last referendum. Canada already pays a price for our 'constitutional malaise' in the form of increased uncertainty and its associated economic costs of high real interest rates and unemployment. This result is consistent with the results of the Spring 1996 survey. It appears that there is an on going concern about the prospect of Quebec separation. Canadian taxes are about 8.5 percent more as a percentage of GDP than its major trading partner, the United States.
Economic studies indicate that high tax rates hinder economic growth and consequently job creation.
The survey asked respondents to list the type of derivative products they currently use. Relative growth in the use of derivatives Respondents were asked whether there has been growth in the use of derivatives over the last two years. In Canada, the popularity of OTC derivatives appear to be waning. Twenty-six percent of respondents stated that OTC derivatives were either very important or important portfolio management tool. This is down from 40 percent last year.