hot money

Definitions (3)
Popular Terms
1. General: Alternative term for discretionary income.
2. International finance: Extremely volatile short-term capital that moves on a short notice to any country providing better returns. Powerful speculators can quickly pump massive sums into a high-yield economy, giving it an artificial aura of success and propriety. But, on a mere suspicion of a downturn or other negative factor, they can (and do) withdraw it almost overnight causing a near collapse of the country's financial structure.
3. Local finance: Money obtained through illegal means such as drug trafficking. Also called dirty money.


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