Just when a few lessons were about to be learned from a crisis supposedly triggered by "external factors" (the Thai baht), an internal crisis triggered a new round of speculation that plunged the Philippine stock market to its lowest level in 10 years and eroded the peso's value against the dollar to record lows.This paper propounds some proposals to regulate short-term capital flows and puts forward some prudential regulation that ought to be taken, not necessarily to prevent a crisis, but to mitigate the impact of hedge funds on the Philippine economy. An update on the current level of appreciation by Philippine monetary authorities is also shared.
