The liver responds to inflammatory signals to regulate hepcidin production. Inflammatory signals such as IL-6 and Activin B stimulate the production of hepcidin by the liver. IL-6 increases phospho-STAT3 levels and subsequently stimulates transcription of hepcidin. Activin B may stimulate the BMP receptor complex directly. Matriptase-2 may also regulate inflammatory stimulation of hepcidin. Importantly, the proximal BMP-responsive element in the hepcidin promoter is necessary for the full effect of STAT-3 stimulation on hepcidin transcription.