A simple model can be used as a reference!

First determine a theory. The market is balanced and briefly define it. In fact, the conversion is very complicated.

In fact, it can be understood simply. 700 billion has been invested in the market. Where did this money come from? It came from interest rate cuts. The purpose of cutting interest rates is simple: banks have more money to make loans.

That’s the problem. Putting more money into the market will lead to inflation and an increase in funds.

Benefits:

1. It will reduce the financing costs of enterprises, enhance their production enthusiasm, and help the government to carry out macro-control of the economy;

2. Changing people's choice of currency investment portfolios will reduce deposits and increase demand for related alternative financial products;

3. The operation and development of enterprises cannot be separated from the support of funds, and interest rate cuts will have a negative impact on the currency market. It will have an important impact and will intensify the stock market in the short term. For the implementation of this policy;

4, it will reduce the financing costs of enterprises, enhance their production enthusiasm, and be conducive to the government's macro-control of the economy;

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To calculate the depreciation rate, you have to look at the amount of RMB issued and the specific amount of money invested in the market.