This invitation is addressed to those participating in the seminar, but also to the wider financial, economic and civic community which, responding to our call, has welcomed us to this ancient but also modern and beautiful city of Naples. BIS Review 5/2004  3
Changes in the target for the overnight rate spread to other interest rates, which then affect borrowing and spending decisions, and thus the overall level of demand for goods and services—what we call aggregate demand. Imbalances between aggregate demand and the economy's capacity to supply goods and services (referred to as the output gap) set off changes in inflation.