Crisis and recovery: Role of the exchange rate regime in emerging market economies

► Examines the role of exchange rate regime in explaining emerging markets' growth during the crisis. ► Controls for regime switches, uses alternative peg definitions, and includes other determinants. ► Growth for pegs was not different from that of floats during the crisis. ► For the recovery period 2010-2011, pegs appear to be faring worse than floats. ► Both trade and financial channels matter during the crisis; trade channel matters for the recovery.