Creating a new economic indicator. The parameters:

To classify something as an economic indicator, it should meet several key parameters that ensure it provides valuable insights into the economy. Here are the essential parameters:

### 1. **Relevance**:

- **Economic Significance**: The indicator must relate to an important aspect of the economy, such as growth, inflation, employment, or trade.

- **Policy Implications**: It should have potential implications for economic policy or business decisions.

### 2. **Measurability**:

- **Quantitative Data**: The indicator should be based on quantifiable data that can be measured, tracked, and compared over time.

- **Reliable Sources**: Data must come from credible and consistent sources to ensure accuracy.

### 3. **Timeliness**:

- **Frequency of Release**: Indicators should be updated regularly (e.g., monthly, quarterly) to reflect current economic conditions.

- **Prompt Availability**: Timely release of data is crucial for the indicator to be useful in decision-making processes.

### 4. **Consistency**:

- **Methodological Soundness**: The method used to calculate the indicator should be consistent over time to allow for accurate comparisons.

- **Standardization**: It should follow a standardized approach that can be replicated and understood by others.

### 5. **Sensitivity**:

- **Reflect Economic Changes**: The indicator should be sensitive to changes in the economy, reacting to shifts in economic activity, policies, or external factors.

- **Leading, Lagging, or Coincident**: Indicators can be classified based on their timing relative to the economic cycle:

- **Leading Indicators**: Predict future economic activity (e.g., stock market performance).

- **Lagging Indicators**: Confirm trends after they occur (e.g., unemployment rate).

- **Coincident Indicators**: Move in line with the overall economy (e.g., GDP).

### 6. **Comprehensibility**:

- **Ease of Interpretation**: The indicator should be straightforward enough that economists, policymakers, and the general public can understand and interpret its meaning.

- **Clarity**: The data should clearly indicate the economic trends or conditions it is meant to represent.

### 7. **Comparability**:

- **Cross-Sectional Comparisons**: The indicator should allow comparisons across different regions, industries, or demographic groups.

- **Over Time**: It should be designed in a way that allows for historical comparison to identify trends.

### 8. **Predictive Value**:

- **Forecasting Ability**: An effective economic indicator should provide insights that help predict future economic conditions.

- **Actionable Insights**: It should provide information that can be used to make informed decisions in economic policy, investment, or business strategy.

### 9. **Economic Theory Foundation**:

- **Theoretical Basis**: The indicator should be grounded in economic theory, ensuring it reflects fundamental economic principles and relationships.

### 10. **Data Quality**:

- **Accuracy**: The data used must be precise and accurately represent the aspect of the economy being measured.

- **Completeness**: It should be comprehensive, covering all relevant components of the economy that it aims to measure.

By ensuring that your proposed indicator meets these parameters, you can classify it as a robust and reliable economic indicator that can be used to gauge and predict economic conditions effectively.