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I examine macroeconomic stability and the properties of business cycles in the model with the announced change of the monetary policy. Also, I solve for the optimal monetary policies over the transition towards the pegged exchange rate for with respect to preferences on monetary authority and transition period length. The novelty of this work is in the presentation of a theoretical framework that allows the modeling of an announced switch of the monetary regime. My experiment shows that the monetary policy should be more concerned about the demand type shocks when announcing switch towards the exchange rate peg.