Macroeconomic stability is one of the most important factors in maintaining high economic growth, especially in a transitional economy likes Laos. The Government of Laos (GoL) seems to prioritize growth over macroeconomic stability in order to escape from Least Developed Country (LDC) status by 2020. However, there are very few studies on this issue in Laos in terms of quantitative analysis. Therefore, the main objective of this study is to evaluate the impact of macroeconomic policy, especially growth and stability policies on the economy. A simple macroeconomic model was developed for this simulation, whose results show that stability policy has a more positive impact on the economy than growth policy. Therefore, in order to maintain high growth, it is important for the GoL to implement stability policy by controlling prices through a tight money supply and a stable exchange rate.