black market

(redirected from Hidden Economy)
Also found in: Dictionary, Thesaurus, Financial.

black market,

the selling or buying of commodities at prices above the legal ceiling or beyond the amount allotted to a customer in countries that have placed restrictions on sales and prices. Such trading was common during World War II wherever the demand and the means of payment exceeded the available supply. Most of the warring countries attempted to equalize distribution of scarce commodities by rationing and price fixing. In the United States black-market transactions were carried on extensively in meat, sugar, tires, and gasoline. In Great Britain, where clothing and liquor were rationed, these were popular black-market commodities. In the United States, rationing terminated at the end of the war, but a black market in automobiles and building materials continued while the scarcity lasted. In the decades following World War II, as the countries of Eastern Europe were trying to industrialize their economies, extensive black-market operations developed because of a scarcity of consumer goods. Black marketing is also common in exchange of foreign for domestic currency, typically in those countries that have set the official exchange value of domestic currency too high in terms of the purchasing power of foreign money. Black-market money activities also grow when holders of domestic currency are anxious to convert it into foreign currency through a fear that the former is losing its purchasing power as a result of inflation. See also bootleggingbootlegging,
in the United States, the illegal distribution or production of liquor and other highly taxed goods. First practiced when liquor taxes were high, bootlegging was instrumental in defeating early attempts to regulate the liquor business by taxation.
..... Click the link for more information.
.

Bibliography

See W. Rundell, Black Market Money (1964).

black market

1. 
a. any system in which goods or currencies are sold and bought illegally, esp in violation of controls or rationing
b. (as modifier): black market lamb
2. the place where such a system operates
References in periodicals archive ?
Giving briefing to the sub-committee held under the Chairmanship of Sardar Ashiq Gopang, Chairman FBR said that hidden economy has big share in the economy and added that people don't want to give tax to the government.
There is a worldwide contemporary debate about the role of the hidden economy in achieving the goal of sustained and inclusive economic growth and development, especially in the context of its spillover effects on the formal economy.
Tax evaders, including those operating in the hidden economy and those who undertake organised criminal attacks on the tax system, deprive the public purse of around PS14billion a year.
Our Common Wealth: The Hidden Economy That Makes Everything Work could have been featured in our business section, but is reviewed here for its wider discussion of economics and their effects on human and natural paths alike.
The HMRC taskforce is aimed at those operating in the hidden economy of the second-hand motor trade and is expected to recover more than PS3 million.
Tax evasion and the hidden economy cost the taxpayer Au9 billion a year.
If, as seems likely; these other factors also have an impact on the extent of the hidden economy, it might be larger than reported in most studies.
With these assumptions, he calculated the hidden economy by first calculating the ratio of currency to demand deposits for the benchmark period of 1937-41 and then estimated the currency to demand deposits of 1976.
Diyab stressed the need to study the cover-up business as a component of a hidden economy and that it has been expanding as the country's economy continues to grow.
With over pounds 10billion being stolen from UK finances each year by criminals involved in the hidden economy, this is serious crime.
The topics include explaining taxpayer non-compliance through reference to taxpayer identities, estimating and updating the hidden economy estimates in Britain, the measurement and recent enforcement initiatives for tax non-compliance in the US, and recent government initiatives in tackling the underground economy in Australia.