german economy

Mired in deflation and stagnant for decades, Japan has been the economic basket case of the developed world. But the world's third-largest economy is getting an unexpected lift from roaring growth in emerging markets.

Plenty of good news may be getting overlooked in a market gripped by one form anxiety after another. That pervasive fear has investors crowding into government bonds. It could also create a good window to get into undervalued stocks.

Investors and policymakers alike are seeking to avoid a painful Japan-like deflationary spiral. Rather than artificially propping up demand, the U.S. should look to Germany, which is banking more on manufacturing to tap into surging global demand.

Beyond Europe's debt crisis and difficulties with the euro, the region's underlying economy -- which has been much less involved with financial gimmicks than its American counterpart -- tends to be more stable than it's generally given credit for.

It's too soon to say if Europe's economic rebound is sustainable. But Germany and other leading eurozone economies are surging ahead on exports and have recouped nearly all the jobs they lost during the downturn. The U.S. might want to take a lesson from their success.

All eyes are on U.S. corporate earnings, but don't overlook what's going on across the Atlantic: The sovereign debt crisis is easing amid signs that an economic rebound may be taking shape. [With video]