Suppose the world was on the gold standard.If Japan ran persistent trade surpluses,

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Under the gold standard, a country with a trade surplus would receive gold from other countries, increasing its money supply. This increase in money supply could lead to inflation. As the country's currency becomes stronger due to the gold inflow, its exports could become more expensive for other countries, potentially reducing exports. Conversely, imports could become cheaper for the country experiencing the trade surplus, leading to an increase in imports.

Suppose the World Was on the Gold Standard