In the study, we use quarterly data of 34 OECD countries for the 1970-2018 period to examine whether exchange rate regimes had affected the depth of recessions and the speed of recovery. We find that the “floaters” tend to have less severe recession and speedier recovery than “fixers”. We also find evidence of currency depreciation in countries with flexible exchange regime during recessionary periods. All these evidences point toward are the “shock-absorber” role of flexible exchange rate in aggregate fluctuations. Finally, we also find pre-recession domestic credit and housing price booms had adverse effect on the severity of recession and the pace of recovery.