Monetary easing refers to the loose monetary and credit policies implemented by the government or the central bank to stimulate economic activities. Water release is the basic means to stimulate the economy. The advantage of money supply is that it can dilute debts and reduce the cost of capital, whether for the government, enterprises or individuals. However, the sequela is that huge amounts of money and credit are continuously injected and stuck in the financial system, which leads to the financial system deviating from the real economy. The application of monetary policy is embodied in seven aspects: 1, controlling currency issuance. The effect of this measure is that paper money can be unified to prevent currency confusion; The central bank can grasp the source of funds as the basis for controlling the credit activities of commercial banks; The central bank can use the right to issue money to regulate the money supply. 2. Control and standardize loans to the government. In order to prevent the government from abusing loans to fuel inflation, capitalist countries generally stipulate that short-term loans are limited and must be paid off when all taxes or debts are collected. 3. Open market business. Through its open market business, the central bank plays a role in regulating the money supply, expanding or tightening bank credit, and then regulating the economy. 4. Change the deposit reserve ratio. The central bank controls the loans of commercial banks by adjusting the reserve ratio and affects their credit activities. 5. Adjust the rediscount rate. The rediscount rate is a discount behavior between commercial banks and the central bank. Adjusting the rediscount rate can control and adjust the credit scale and affect the money supply. 6. Selective credit control. It is a special management for specific objects, including: securities trading credit management, consumer credit management and real estate credit control. 7. Direct credit control. It is a measure taken by the central bank to directly intervene and control the credit activities of commercial banks in order to control and guide their credit activities.