black market

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

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black market

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
Collins Discovery Encyclopedia, 1st edition © HarperCollins Publishers 2005
References in periodicals archive ?
On the economic rationale of estimating the hidden economy. Economic Journal, 109, F381--F389.
The terminologies used in the literature include black economy, informal economy, second economy, unofficial economy, hidden economy, underground economy, shadow economy, and irregular economy (see [6, 8-13]).
The hidden economy, which accounts for 30% of output, and keeping a grip on credit growth, 35% in late 2010, are also priorities.
Mr Gauke added: "I think it is morally wrong." But he admitted it was a "large part of the hidden economy".
The term informal economy has no clear accepted definition but it is synonymous with parallel/underground or hidden economy, depending from country to country.
According to the surveys on Non-Observed Economy of the Department of Statistics, hidden economy made 15.2-18.9% of Lithuania's GDP in 2003 (Juskiene, Markelevicius 2003).
Living on unemployment benefit for a lengthy time is depressing when debt problems start to mount unless a means of obtaining extra money can be found in the hidden economy or by criminal activities.
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.
THE SOURCE: "The Hidden Economy in East-Central Europe: Lessons From a Ten-Nation Survey" by Colin C.
From used terms we can mention: informal sector, unstructured sector, shadow economy, hidden economy (invisible, occult, submerging, illegal, parallel, secondary, informal, undeclared, unaccounted, social), district/ region economy, ghetto economy, counter-economy, guerilla capitalism, "black" labor, shadow commerce, tax evasion, dirty money laundering, breach of "white collars", tips, bribery, contrabands, a.o..
The amount of cash channelled through the hidden economy is also set to rise.