The recent surge in share prices appears to assume that profits will grow at a strapping double-digit pace over the next year, but that will be hard if inflation continues to slide.America's escape routeOne reason for hoping that America will avoid deflation is a weaker dollar, which will support exports and boost import prices.
The Federal Reserve, whose enemy these days is deflation, has more openly cheered on the greenback's decline, on the theory that it will boost import prices and thus ensure inflation.
By mid-year, the government's planned massive increase in infrastructure spending will boost imports of raw materials and machinery.
American textile companies worried that the legislation would boost imports from Bangladesh and Cambodia, which already were, respectively, the second and eighth largest sources by volume for U.S. apparel imports.
"The Chinese side understands concerns among eastern European countries over trade imbalances and will boost imports from those countries," Mr. Wen said at the forum.
The deal would mean the elimination of the vast majority of trade tariffs, and boost imports and exports in key areas such as agriculture, car manufacturing and clothing, according to Downing Street.
He promised more measures to increase domestic consumption as the economy weans itself off export-led growth and also said Beijing would introduce policies to boost imports, he told the meeting in the north-eastern city.
On November 13th José Manuel Barroso, the commission's president, struck a conciliatory note, but suggested that Germany could do more to support domestic demand, which would boost imports, by opening up its services sector.The commission's decision has made many Germans indignant but that is because, wrongly, they regard their surplus as a sign of their exporting virility.
Steel, lumber and other materials for rebuilding will also boost imports.
As the country experiences the worst drought it has seen in its history, the impact on agriculture has forced the country to boost imports.
To make matters worse, the South African Reserve Bank (SARB) believes that inflation will remain above the target range until 2010, because of factors including the persistent strength of food and oil prices, the spread of price pressures throughout the economy and the weakening of the rand (which is boosting import prices).
