How did consumers demand for goods affect the power of the italian states and the power of the catholic church

AFter and befor ethe 1st crusade Italian cty states were those which traded and poriivided oriental luxury goods for rest of Europe, such role made Italian city states enormously rich by the end of early Middle AGed and conitued to be till the Late Middle AGes, in terms of Papacy (probably that is the meaning of word 'church' used in question not whole european faithfull or clergy) dminished a bit in political stance vs Italian city states