02426cas a2200337 a 4500 AALejournalIMF022160 230101c9999 xx r poo 0 0eng d 5.00 USD 9781557759764 1018-5941 BD-DhAAL BD-DhAAL Deghi, Andrea. Commercial Real Estate and Macrofinancial Stability During COVID-19 / Andrea Deghi, Junghwan Mok, Tomohiro Tsuruga. Washington, D.C. : International Monetary Fund, 2021. 1 online resource (55 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 The COVID-19 pandemic crisis has severely shocked the commercial real estate (CRE) sector, which could have important implications for macro-financial stability going forward because of the large size of the sector and its strong interconnectedness with the real economy. Using a novel methodology, this paper quantifies vulnerabilities in the CRE sector and analyzes policy tools available to mitigate related risks. The analysis shows that CRE prices were overvalued in several major advanced economies in 2020:Q1. It also shows that such price misalignments increase the likelihood of future price corrections and exacerbate downside risks to future GDP growth. While the path of recovery in the sector will depend inherently on the pace of overall economic recovery and the structural shifts induced by the pandemic, easy financial conditions may contribute to an increase in financial vulnerabilities and persistent price misalignment. Macroprudential policy can, however, be effective in curbing the financial stability risks posed by the CRE sector. Mode of access: Internet Central Banks and Their Policies imf Credit imf Financing Policy imf Monetary Policy imf Money Multipliers imf Money Supply imf Mok, Junghwan. Tsuruga, Tomohiro. IMF Working Papers; Working Paper ; No. 2021/264 Full text available on IMF http://elibrary.imf.org/view/journals/001/2021/264/001.2021.issue-264-en.xml IMF e-Library