The Impossible Duo? Globalization and Monetary Independence in Emerging Markets ¤ Andrés Velasco Harvard University and NBER Revised May 20, 2001 ¤ This paper was prepared for the 2001 meeting of the Brookings Trade Forum, May 10 and 11, Washington DC. My discussants, Guillermo Calvo and Olivier Jeanne, and the editors, Susan Collins and Dani Rodrik, provided excellent comments and suggestions. I thank the Center for International Development at Harvard for generous support, and Eric Lockwood for e¤ective assistance. All errors are my own.