01813cas a2200253 a 4500 AALejournalIMF001318 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451856439 1018-5941 BD-DhAAL BD-DhAAL Clark, Peter. Filtering the Beer : A Permanent and Transitory Decomposition / Peter Clark, Ronald MacDonald. Washington, D.C. : International Monetary Fund, 2000. 1 online resource (38 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students In this paper we extend the BEER (Behavioral Equilibrium Exchange Rate) approach which identifies an estimated equilibrium relationship between the real exchange rate and economic fundamentals. Here the economic fundamentals are decomposed using Johansen cointegration methods into transitory and permanent components, with the latter used to estimate the Permanent Equilibrium Exchange Rate, or PEER, for the U.S. and Canadian dollars and the pound sterling. The BEER and the PEER move closely together for the U.S. and Canadian dollars and generally track the actual exchange rate. By contrast, for the pound sterling the BEER and the PEER diverge sharply, with the latter following the actual exchange rate quite closely. Mode of access: Internet MacDonald, Ronald. IMF Working Papers; Working Paper ; No. 2000/144 Full text available on IMF http://elibrary.imf.org/view/journals/001/2000/144/001.2000.issue-144-en.xml IMF e-Library