Austrian economists have, since the latest boom-bust cycle and financial crisis, called for a critical reexamination of the "rationale of central banking" by emphasizing the role of central banking in generating business cycles.
Plans to abolish central banks constitute an extreme reform. It is doubtful that such plans can succeed without broader institutional change, occurring either first or simultaneously. That is likely true regardless of the strength of evidence on central bank performance.
Hayek, in his writings in the 1970s, made recommendations on how central bankers could "best" function while also arguing ultimately for the elimination of central banking.
.. We conclude that the need for a systematic exploration of alternatives to the established monetary system is … pressing today.
Central-bank response to the most recent crisis makes the discussion for abolishing the Fed even more important. The Fed has moved in the direction of greater, not lesser, central-bank involvement in the economy. .. The Fed's monetary policy is now a "mondustrial policy." It is an intervention framework financed by money creation. The Fed has done extensively more in response to this crisis than Hayek's recommended prevention of a secondary deflation. It has engaged in picking winners and losers — crony capitalism at its worst .. "The Fed's 'nontraditional' actions have crossed a bright line into fiscal policy and the direct allocation of credit."
Thus it is even more imperative that Austrians continue to make as strong a case as possible for a return to sound money. The is why monetary freedom matters, as it is ultimately the way forward for an eventual withering away of central banks and a return to a commodity-based money; a sound market-based monetary system.