The article examines if stabilizing exchange rates can help counteract the negative effects of Dutch disease. By using a model with fixed prices and learning effects in the tradable sector, the study shows that trying to prevent an overvalued exchange rate can save tradable output but lead to resource misallocation in other sectors. It also reveals that intervening in exchange rates can decrease overall welfare. This suggests that trying to stabilize exchange rates during a Dutch disease episode could cause more harm than good.