For the purpose of this research, exchange rates will be classified into two major groups—
fixed and flexible regimes. Conventional pegs, currency boards, and pegs with no separate legal
tender are classified into fixed regimes; while stabilized arrangements, crawling pegs, craw-like
arrangements, managed float, and free floating are classified into flexible regimes. The data for exchange rates will be derived from IMF de facto classification—the actual exchange rate behavior
countries adopt rather than what they claim to adopt—from the Annual Report on Exchange
Arrangements for 2012