III. Issues for discussion at the conference  Whereas East Asia’s integration could bring substantial benefits to both the global and regional economies, possible side effects should be monitored carefully. It will be a challenge to reap maximum benefits from deepening economic and financial integration while minimizing costs that could possibly arise from such integration.
Keeping these broad viewpoints in mind, let me raise several questions that I hope are discussed at the conference. First, what are the implications of East Asia’s growing economic and financial integration on the global business cycle and price movements? The mechanisms through which integration affects various economic variables are complicated.