Performative Trumponomics and Financial Market

144
DOI: 10.20542/0131-2227-2020-64-2-24-33

V. Milovidov (vmilovidov@hotmail.com),
MGIMO University, 76, Prosp. Vernadskogo, Moscow, 119454, Russian Federation;
Russian Institute for Strategic Studies, 15B, Flotskaya Str., Moscow, 125413, Russian Federation

Abstract. The article analyzes the impact of messages by US President D. Trump in the Twitter on economic dynamics. The author defines the features of Trump’s tweet style and reveals the concept of performativity of the policy he implements. The performativity of Tramponomics is appeared in the effective, often aggressive, goal focused verbal interventions generated by the head of the state. They are typically a) consisting of an announcement of the most significant decisions and initiatives in the field of both political and economic transformations, b) accompanying the adoption of relevant decisions of the US administration, c) keeping electorate’s attention towards the most important Trump’s policy topics, turning the last ones into a kind of “ideological markers” of Tramponomics. The impact of Donald Trump’s verbal interventions is analyzed based on the dynamics of the popularity of Google user queries semantically related to Trump’s tweets. The approach helps to find out how much such tweets are reflected in the mass consciousness and, consequently, in mass economic behavior. Analyzing this empirical data, the author is setting the goal to prove the hypothesis that the power of influence of the American President’s tweets on economic dynamics is heavily dependent on the level of popular attention to these messages. The author shows that because of a) the combination of tweets, b) well-articulated policy goals and c) performative style of expressing the messages addressed to the public (primarily to key electorates) Trump’s verbal interventions became a sort of exponentially scalable events (ESEs). The author defines the ESEs as such events (or informational signals) which are manifested on the financial market and in economy as a whole and can lead to large-scale consequences both for individuals and the entire economy. These events occur periodically and are characterized by the distinctness against the background of other events, ability to influence the development of these or that trends, to provoke a sequential chain of changes, when each subsequent event enhances the impact of the previous one. I.e., their results are exponentially scaled.

Keywords: Trumponomics, performativity of economics, verbal interventions, twitter, exponentially scalable events, financial markets, narrative economics, social networks, economic dynamic


REFERENCES

1. Austin J.L. How to Do Things with Words. Oxford, Clarendon Press, 1962. 167 p.

2. Shiller R.J. Narrative Economics. NBER Working Paper 23075, January 2017. 57 p. Available at: https://www.nber.org/papers/w23075 (accessed 03.10.2019).

3. Milovidov V.D. Upravlenie innovatsionnym protsessom: kak effektivno ispol’zovat’ informatsiyu [Management of innovation: how to effectively use the information]. Neftyanoe khozyaistvo, 2015, no. 6, pp. 10-16.

4. Milovidov V.D. Uslyshat’ shum volny: chto meshaet predvidet’ innovatsii? [Hearing the sound of the wave: what impedes one’s ability to foresee innovations?] Foresight, 2018, vol. 12, no. 1, pp. 88-97. DOI:10.17323/2500-2597.2018.1.88.97

5. Yahoo Finance. Available at: https://finance.yahoo.com (accessed 03.10.2019).

6. How Does President Donald Trump Twee? 2016/2019. Tweet Binder Blog. Available at: https://www.tweetbinder.com/blog/trump-twitter/ (accessed 07.10.2019).

7. Google Trends. Available at: https://trends.google.ru/trends/?geo=RU (accessed 18.10.2019).

8. Liu E. Yes, Trump’s Tweets Move the Stock Market. But Not for Long. Barron’s, Sept. 9, 2019. Available at: https://www.barrons.com/articles/donald-trump-twitter-stock-market-51567803655 (accessed 03.10.2019).

9. Sentiment Survey Past Results. American Association of Individual Investors. Available at: https://www.aaii.com/sentimentsurvey/sent_results (accessed 03.10.2019).


Registered in System SCIENCE INDEX

For citation:
Milovidov V. Performative Trumponomics and Financial Market. World Eсonomy and International Relations, 2020, vol. 64, no. 2, pp. 24-33. https://doi.org/10.20542/0131-2227-2020-64-2-24-33



Comments (0)

No comments

Add comment







Indexed

 

 

 

 

Dear authors! Please note that in the VAK List of peer-reviewed scientific journals, in which the main scientific results of dissertations for the degree of candidate and doctor of sciences should be published for the “MEMO Journal” the following specialties are recorded:
economic sciences:
5.2.5. World Economy.
5.2.1. Economic Theory
5.2.3. Regional and Branch Economics
political sciences:
5.5.4. International Relations
5.5.1. History and Theory of Politics
5.5.2. Political Institutions, Processes, Technologies

 

Current Issue
2025, vol. 69, No. 3
Topical Themes of the Issue:
  • Interference Debate within the UN: Record of Systematic Study 
  • Problems and Ways of Russia’s Access to Non-CIS Countries Product Markets
  • The Integration in Central Asia: Restrictions and Perspectives
Announcement

Dear authors of the journal!

Please note that the author's copies of the issues in which your texts are published are kept in the editorial office for no more than one year. After this period expires, the editorial office has the right to dispose of unclaimed copies at its own discretion.

 

Submit an Article
INVITATION FOR PUBLICATION
The Editorial Board invites authors to write analytical articles on the following topics:
  • changes in the processes of globalization in modern conditions
  • formation of the new world order
  • shifts in civilization at the stage of transition to a digital society

The editors are also interested in publishing synthesis articles / scientific reviews revealing the main trends in the development of certain regions of the world - Latin America, Africa, South Asia, etc.