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A contemporaneous economic indicator is one that moves at the same rate as the economy. When the economy goes down, it is reflected by the indicator. Gross Domestic Product is considered to be a contemporaneous indicator. As the economy improves, GDP improves and as the economy declines the same is true for GDP...
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Without going into detail, the three relationships that Economic Indicators can have with the economy are Procyclical, Countercyclical, and Acyclic. If need be, they will be discussed later.
The first leading economic indicator that will be focused on is Monetary Policy. Monetary Policy is purposed to influence the performance of the economy...
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