In the TPLT studies I cited earlier, policy is assumed to revert to an inertial Taylor rule after liftoff, and therefore policy remains accommodative for some time thereafter, which depends on the degree of policy inertia in the reaction function.
The time is coming when policymakers will need to consider tightening selected macroprudential policy tools to tackle pockets of elevated vulnerability. For instance, throughout the COVID-19 crisis the demand for housing continued to increase in many countries, drawing attention to risks in the residential real estate sector.