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).

The Columbia Electronic Encyclopedia™ Copyright © 2013, Columbia University Press. Licensed from Columbia University Press. All rights reserved. www.cc.columbia.edu/cu/cup/

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
Collins Discovery Encyclopedia, 1st edition © HarperCollins Publishers 2005
References in periodicals archive ?
Noufel said that other human body organs such as spleen and cornea are also sold in the black markets.
Last month, the state government banned fuel sale in black markets to boost economy.
However, she added that Ankara is deeply concerned about the growth of Isil and its potential to cause instability within Turkey itself, and is also under significant pressure from Europe and the United States to better monitor the black market and to try to halt its activities.
What makes these black markets notable is their resilience and sophistication, Ablon said.
As of the mid-1990s, some 20,000 tons of CFCs were being traded through black market channels, according to the EIA.
(49) Some of this was recovered by the occupation forces after they arrived at the end of August but much of it vanished, only to reappear again in the myriad black markets throughout Japan.
In July 2001, the United Nations convened a panel focusing on the black market trade in small arms and light weapons.
Drugs produced in black markets are not manufactured under any safety or health regulations and are not labelled with ingredients or potency.
This study attempts to add to the understanding of currency black markets and of capital mobility in developing countries by answering questions as to whether black markets for foreign exchange have significantly weakened capital controls in a sample of Asian Pacific countries - Taiwan, Korea, Thailand, Indonesia, Pakistan, Malaysia, and the Philippines.
where [S.sub.t] is the black market exchange rate at time t and [S.sub.t-1] and [S.sub.t-2] are the on-e and two-month lagged values.
According to the order, selling of fuel in black markets is prohibited and any fuel station or individual working in fuel stations selling fuel in black markets commits an offense and could, upon conviction, face life imprisonment or pay a fine of up to SSP 10, 000.
The Federal Board of Revenue has said that Pakistan's black market had grown to more than half the size of the formal economy, according to a researcher.