The "central" region of moduli space of M- and string theories is where the
string coupling is about unity and the volume of compact dimensions is about
the string volume. Here we argue that in this region the non-perturbative
potential which is suggested by membrane instanton effects has the correct
scaling and shape to allow for enough slow-roll inflation, and to produce the
correct amplitude of CMB anisotropies. Thus, the well known theoretical
obstacles for achieving viable slow-roll inflation in the framework of
perturbative string theory are overcome. Limited knowledge of some generic
properties of the induced potential is sufficient to determine the simplest
type of consistent inflationary model and its predictions about the spectrum of
cosmic microwave background anisotropies: a red spectrum of scalar
perturbations, and negligible amount of tensor perturbations.Comment: 9 pages, 1 figur