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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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 ?
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According to reports, expatriates shell out as much as BD1,500 to buy residence permits in the black market.
The effort to suppress the black market has forced dealers off the streets and into alleyways.
The amount lost to black market tobacco had previously been falling from a record PS3.5bn in 2000/01.
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But the quarter-ounce restriction promises to preserve the black market as a preferred option for many buyers.
Global Banking News-April 27, 2015--Egypt's central bank governor says currency black market 'wiped out'
Egypt's black market for dollars has stalled, threatening to cut off company access to the greenback, after the central bank ordered the country's lenders to place a limit on dollar deposits.
A 'shadow economy' is a black market or underground economy which functions as a market in which goods or services are traded illegally.
It was the fifth official depreciation this week, prompted by the widening gap between the black market and the official rate.
"I don't remember how we got there--probably on tires borrowed from a neighbor--but in the dark of night, we drove into a black market House of Tires!