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Wavelet analysis can help interpret causality by revealing the time-frequency characteristics of signals, allowing researchers to identify correlations and dependencies across different scales. By examining the wavelet coefficients of two or more time series, one can assess how changes in one series may influence another over time. Granger causality tests can also be applied in the wavelet domain to determine if past values of one series can predict future values of another. This approach provides a detailed view of causal relationships that may vary across different time scales.

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