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 ?
'I believe that it will aggravate the underground economy in our country.
This implies that level of higher education in the country inculcates the sense of morality in the general population therefore reducing the size of the underground economy.
It is inconceivable that the government would simply accept enormous revenue losses from a larger underground economy and from tax dodges on trading profits.
Let us use the following terms and symbols: t is financial (taxation) year; [??](t) is the income of the economic system from the production and service rendered by the business; [[??].sub.1](t) is posttax income of an economic entity; u(t) is the tax burden of the economic entity in the financial (tax) year; [xi] is equity capital load taking into account the taxes; [??] is the fuzzy value of the growth rate of the economy; [??] is the fuzzy value of the underground economy weight; [tau] is period for tax liabilities.
Ahmed and Ahmed (1995) also employed Tanzi's methodology to estimate the growth proportions of underground economy and tax evasion in Pakistan from 1960 to 1990.
The evaluations of the magnitude of the underground economy assist in indicating their vulnerability and responsiveness to velocity presumptions.
A study by Rand Corporation and commissioned by the security firm Juniper Networks found a well-organised, multibillion-dollar underground economy that has become "a playground of financially driven, highly organised and sophisticated groups." The evolution of cybercrime creates new challenges for security professionals trying to protect computer networks, says Nawaf Bitar, Juniper's general manager for security.
But for people toiling in the state's underground economy, basic information is often unavailable.
However, this objective stands to be defeated, if the underground economy forms a larger and persistently increasing proportion of the total economy.
Floating City: A Rogue Sociologist Lost and Found in New York's Underground Economy, by Sudhir Venkatesh, 304 pages, Penguin Press, $27.93
Dr Murtaza Mughal said that growth rate remains dismal, borrowings, circular debt, inflation, budget deficit, interest rate, poverty and unemployment has been rising while the mass of underground economy has been increasing.
And judging from what its authors told me recently, that's one of the key reasons why many Latin Americans refrain from doing business, or why they choose to do business in the underground economy. Court proceedings in commercial disputes are so lengthy, complicated and costly, that they discourage business, they said.

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