That translation is the best which comes nearest to giving its modern audience the same effect as the original had on its first audiences. Just to illustrate that, may I use a rather crude example from modern French? French novelists often represent married couples as calling each other mon chou, which I don't think would strike a Frenchman as funny at all. If you translate that into English by the words, 'my cabbage,' you're going as far as possible as you can from the principle of equivalent effect. In fact, you're making the English reader think that Frenchmen are silly, which is the last thing that you should do. [...] The word [paraphrase] is much misused, by the way; it is often used as a term of abuse for very good translation. I should put it in this way, that it is permissible only where literal translation is liable to obscure the original meaning. I would go further and say that on such occasions it is not only permissible, but it is imperative, and therefore it becomes good translation, and the word 'paraphrase' should disappear.
E. V. Rieu, "Translating the Gospels: A Discussion Between Dr. E.V. Rieu and the Rev. J.B. Phillips", The Bible Translator 6/4 (October 1955), pp. 153 & 157.