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).

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
References in periodicals archive ?
On the economic rationale of estimating the hidden economy.
It is also noteworthy that with reference to some foreign researches' estimations, the extent of black economy have a significant differences--according to the professor of Linco university (Austria) Friedrich Shneider, the share of hidden economy even in 2003 reached 29.
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.
For the policymaker, understanding the normative processes of the hidden economy, their link with the environment and institutions that underpin mainstream economic activity, and the potential of particular manifestation in specific environments, offers real prospects for their legitimization and return to productive economic endeavour.
The amount of cash channelled through the hidden economy is also set to rise.
Gary Ashford, tax investigations director at Grant Thornton in Birmingham, said: "The report found that while HMRC may be unable to affect all the factors driving the hidden economy, it compares well to other authorities in tackling the problem.
Many millions of people who now engage in this hidden economy (it's now at least four times as big as the stock market itself) must know the essentially unproductive nature of their investments.
51) Another important area of the hidden economy is land trading, which has been performed both by Islamic companies and by the military, due to the value of the rent available in that activity.
Throughout the developing world the size of hidden economy is considerably higher.