The document summarizes the costs of peso appreciation for the Philippine economy. It finds that for every 10% the peso is overvalued, GDP growth is reduced by 0.2%. Keeping the peso at 41 PHP/$ until 2017 would result in lost GDP from appreciation compared to returning it to 45 PHP/$. The author recommends macroprudential measures by the central bank to reduce appreciation, lowering interest rates, raising inflation targets, and printing pesos to soak up foreign inflows. Fiscal measures include borrowing dollars domestically and issuing infrastructure bonds. Public support is needed to abandon the view that a strong peso means a strong economy and instead support a weak, job-creating peso.