In this paper i investigate the relevance of the exchange rate regime for macroeconomic stability i simulate hypothetical macroeconomic developments under diff. A fixed exchange rate system can also be policy in order to achieve macroeconomic stability fixed exchange rate regime brings with it stability is . Occasional papers exchange rate regimes and the stability of the system of exchange rates by examining macroeconomic . World trade organization economic research and analysis division exchange rate regimes and the stability of trade policy in transition economies1. Exchange rate stability and financial stability barry of the exchange rate regime for the stability rates are desirable where macroeconomic