- n. banking, economics The forces in a free market which tend to control and limit the riskiness of a financial institution's investment and lending activities, such as the concern of depositors for the safety of their deposits and the concern of bank investors for the safety and soundness of their institutions.
“Since then, the public debate has been deadlocked, with some on the right arguing for a strong dose of market discipline through Health Savings Accounts, others on the left arguing for a single-payer national health-care plan similar to those that exist in Europe and Canada, and experts across the political spectrum recommending a series of sensible but incremental reforms to the existing system.”
“In contrast, there is no analogous market discipline that pushes companies to donate the right kinds of vaccines and develop the right kinds of socially beneficial technologiesin Esther Duflos words, there is no automatic feedback loop.”
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