  This paper presents an analytical approach to explore the damping effect of
inner loops on grid-forming converters. First, an impedance model is proposed
to characterize the behaviors of inner loops, thereby illustrating their
influence on output impedance shaping. Then, based on the impedance
representation, the complex torque coefficient method is employed to assess the
contribution of inner loops to system damping. The interactions among inner
loops, outer loops, and the ac grid are analyzed. It reveals that inner loops
shape the electrical damping torque coefficient and consequently influence both
synchronous and sub-synchronous oscillation modes. The virtual admittance and
current control-based inner-loop scheme is employed to illustrate the proposed
analytical approach. The case study comprises the analysis of impedance
profiles, the analysis of damping torque contributed by inner loops under
various grid strengths, and the comparison between dq-frame and
{\alpha}\b{eta}-frame realizations of inner loops. Finally, simulation and
experimental tests collaborate with theoretical approaches and findings.
