Abstract

When the economy is faced with sudden external shocks, the current account is considered an important political priority. In this research, the effect of stock price shocks on the current account was reviewed in 2112. It attempted to extend the analysis of ECO member countries during 2008 to a wide range of Middle Eastern countries and to investigate the effects of stock price shocks with the effects originating from monetary policy and exchange rate, which is regarded as an innovation in the literature. Information is extracted from the World Bank website. The results for the current account fluctuation variable showed that current account fluctuations, stock price variables and the ratio of current account fluctuations to gross domestic product, as well as nominal interest rates influence the variable most. In addition, the least explanation for the current account fluctuations is related to GDP and consumer prices.