  We develop a model of $(1+1)$-dimensional parent and baby universes as
macroscopic and microscopic fundamental closed strings. We argue, on the basis
of understanding of strings from the point of view of target $D$-dimensional
space-time, that processes involving baby universes/wormholes not only induce
$c$-number "$\alpha$-parameters" in $(1+1)d$ action, but also lead to loss of
quantum coherence for a $(1+1)d$ observer in the parent universe.
