Judged: two independent readers; copy check clear.
circular causality
circular causality Circular causality is a two-way relationship in which each factor helps shape the other, rather than one acting as the only cause.
Circular causality is a two-way relationship in which each factor helps shape the other, rather than one acting as the only cause. In the source material, it refers to the idea that accounting figures can influence market value while market activity can also influence accounting practices.