We present a feedback or recurrent, auto-associative model that captures several important aspects of causal learning and causal reasoning that cannot be handled by feed-forward models. First, our model learns asymmetric relations between cause and effect, and can reason in both directions between cause and effect. As a result it can represent an important distinction in causal reasoning, that between necessary and sufficient causes. Second, it predicts cue competition among effects and provides a mechanism for them, something which can only be done with feed-forward models by assuming that two separate networks are learned, a highly non parsimonious assumption. Finally, we show that contrary to previous claims, a feed-forward model cannot handle Discounting and Augmenting in causal reasoning, although a feedback model can. The success of our feedback model argues for a greater focus on such models of causal learning and reasoning.