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 ?
Skolka, "A few facts about the hidden economy seminar--the unofficial economy, consequences and policies in the West and East," in Canadian Public Policy, R.
Kaminski, "Integrating the unofficial economy into the dynamics of post-socialist economies: a framework of analysis and evidence," in Economic Transition in the Newly Independent States, B.
Entrepreneurs can choose to operate either in the official or in unofficial economy. In the absence of corruption, the payoff to an entrepreneur in the official sector is:
The following proposition establishes that in our model, greater decentralization reduces the size of unofficial economy, increases provision of local public goods, and may affect the degree of local corruption either positively or negatively.
The unofficial economy comprises of both the informal economy and the unreported economy.
most of the former Soviet Union has thus ended up in a `bad' equilibrium with low tax revenue, high unofficial economy as a percentage of GDP, and low quality of publicly provided services.(53)
The government started to take serious steps in merging the unofficial economy into the official one.
The perception has emerged, in parallel with this historic ownership transfer, that corruption has reached endemic levels in the transition economies of the FSU and CEE alone.(3) While empirical evidence is naturally elusive for such activities, some micro-surveys as well as anecdotal evidence--much of it widely reported in the freer press--is suggestive.(4) Moreover, empirical evidence now exists tracing the evolution of the unofficial component of the transition economies.(5) For the FSU, the share of the unofficial economy's contribution to the overall economy (unreported value added as a percentage of GDP) is estimated to have increased almost three-fold over the 1989-1994 period, from 12 percent to 33 percent.
FILE - Finance Minister Amr El-Garhy CAIRO -- 8 March 2018: Egypt's unofficial economy represents about 40 percent of economy volume, Minister of Finance Amr el-Garhy said at the Conference of boosting the mobilization of Egypt's domestic resources.
Online tax payment helps integrate the unofficial economy into the formal economy, according to Economics Professor at Cairo University Fakhry Fiki.
Tawfik said the unofficial economy in Egypt amounts to 60 percent of the formal economy, noting that Egypt has various economic opportunities.

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