Independence and accountability

There are some institutions which people want to be independent, such as central banks, because people want these institutions to focus their tasks without distraction from the outside environment. Being independent has some obvious advantages that they can focus on their tasks and maximise the benefits in long run. However, the disadvantages are also obvious. When making an organization completely independent, it is very likely to make it accountable. Then here comes the contradiction between independence and accountability. 

Sometimes we want both; however, this is definitely impossible. Accountability and independence are almost exactly opposed against each other. Accountability means some degree of punishment is possible when necessary. Punishment involves a cost of conducting the activity and it will have a negative impact on the punished party. Of course, giving the independent organisation the power to monitor itself and even punish itself when necessary is not helpful for holding the organisation accountable. Then another party is needed to be pointed to monitor the organization. However, being a regulator does not mean the necessity of being held accountable as well. Therefore, another party has to be pointed to monitor this regulator, this story will go on and on. This will either end up with a closed cycle or someone who has enormous power to monitor everything. 

Overall, it is impossible to be independent and held accountable at the same time. Only dictator is completely independent; on the other hand, a closed cycle means people hold each other accountable, but with some form of collaboration, no monitor is done and all are independent.