The situation is similar to the "Market for lemons" in cars: if the market is polluted with lemons (fake papers), you are disincentivized to publish a plum (real results), since no one can tell it's not faked. You are instead incentivized to take a plum straight to industry and not disseminate it at all. Pharma companies are already known to closely guard their most promising data/results.
Similar to the lemon market in cars, I think the only solution is government regulation. In fact, it would be a lot easier than passing lemon laws since most labs already get their funding from the government! Prior retractions should have significant negative impact on grant scores. This would not only incentivize labs, but would also incentivize institutions to hire clean scientists since they have higher grant earning potential.
If someone brings a plum to a market for lemons, they can distinguish the quality of their product by offering a warranty on its purchase, something that sellers of lemons would be unwilling to do, because they want to pass the cost burden of the lemon onto the purchaser.
The full paper is fairly accessible, and worth a read.
Not sure how this could be applied to academia, one of the problems is that there can be significant gaps between perpetrating fraud and having it discovered, so the violators might still have an incentive to cheat.
> Before May 2020, M2 consists of M1 plus (1) savings deposits (including money market deposit accounts); (2) small-denomination time deposits (time deposits in amounts of less than $100,000) less individual retirement account (IRA) and Keogh balances at depository institutions; and (3) balances in retail money market funds (MMFs) less IRA and Keogh balances at MMFs.
> Beginning May 2020, M2 consists of M1 plus (1) small-denomination time deposits (time deposits in amounts of less than $100,000) less IRA and Keogh balances at depository institutions; and (2) balances in retail MMFs less IRA and Keogh balances at MMFs. Seasonally adjusted M2 is constructed by summing savings deposits (before May 2020), small-denomination time deposits, and retail MMFs, each seasonally adjusted separately, and adding this result to seasonally adjusted M1.
EDIT: Of course since M1 is what really changed, M2 is effectively the same.
Here's a link to a Q&A about the change, and the relevant explanation.
"3. Why are savings deposits being recognized on the H.6 statistical release as a transaction account? Posted: 12/17/2020
A. As announced on March 15, 2020, the Board of Governors reduced reserve requirement ratios on net transaction accounts to 0 percent, effective March 26, 2020. This action eliminated reserve requirements for all depository institutions and rendered the regulatory distinction between reservable “transaction accounts” and nonreservable “savings deposits” unnecessary. On April 24, 2020, the Board removed this regulatory distinction by deleting the six-per-month transfer limit on savings deposits in Regulation D. This action resulted in savings deposits having the same liquidity characteristics as the transaction accounts currently reported as “Other checkable deposits” on the H.6 statistical release.
To account for the change in their liquidity characteristics, savings deposits will be recognized as a type of transaction account on the H.6 statistical release"