The necessary and sufficient condition to test for 'overall causality', i.e., the presence of Granger-causality and instantaneous causal relations, in a bivariate and trivariate autoregressive model with recursive form is discussed. It is argued that the conventional AR model (the reduced form...

The primary focus of this study will be an analysis of the causal links, and an assessment of the causal positioning of the significant variables involved in the interactions, between prices and exchange rates. Do exchange rate movements lead to associated price changes or do price changes lead...