Financial Supervisory Commission Chairman Sean Chen recently criticized the central bank for suppressing the country's key interest rates and keeping them too low, which he argued has indirectly pushed housing prices higher. Central Bank governor Perng Fai-nan later responded by stressing the importance of keeping interest rates low to control the flow of hot money. Neither argument is right or wrong. The different views only reflect the impossible trinity -- the impossibility of maintaining a fixed exchange rate, free capital movement, and an independent monetary policy at the same time. While there is no easy solution to the dilemma, a compromise is possible between the two Cabinet members. On this point, we cannot but criticize the Executive Yuan, which did nothing to mediate the conflict. Although both the FSC and central bank are independent agencies and although exchange rates and interest rates are both very technical issues, they are nevertheless both subordinate to the Executive Yuan and subject to the supervision of the premier and vice premier. There is no reason to allow the two officials to trade barbs outside the Cabinet rather than communicating internally. This undermines the Cabinet team's credibility and will be unfavorable to the building of consensus on other financial and economic policies. Kids only fight when adults are not home. But the premier obviously is sitting high up on his bench, and there is a racket below it. The people cannot but question: Are there any adults in the Cabinet? (May 12, 2010) 