This approach adopts hierarchical K‐means Clustering method as a basic classing tool to assign 97 countries’ samples to different de facto exchange rate regime groups over the period of 1976 to 2008. Besides, we constructed a fisher discrimination functions based on the classification for...

Extant research finds that exchange rate pegs do little to reduce firms' exposure to exchange rate risk in emerging markets. We study whether exchange rate risk exposures under a pegged/controlled floating currency regime can be priced in asset returns using unique data on exchange rate regime...