credit, including © notice, is given to the source. Decoupling and Recoupling

We are grateful to Olivier Jeanne and participants at the 2010 AEA meetings for helfpul comments and to Alejandro Izquierdo (IDB) for kindly providing us with data for emerging countries. A shorter version of this paper will be published in the American Economic Review Papers and Proceedings (May 2010). The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications