The paper evaluates the theoretical and empirical literature about the link between exchange rate regimes and macroeconomic performance. The main conclusion is that the distinction between fixed and floating exchange rate regimes seems important for developing economies but not for developed ones. In particular, flexible exchange rate regimes tend to be more favorable for an emerging economy on theoretical and empirical grounds surveyed in the broad literature. However, the existing evidence is not totally robust to the way the literature classifies regimes.