The Nobel prize-winning economist Paul Krugman conveyed a singularly bearish view of the economy upon his visit to Australia on the weekend. Not everyone agrees with his assessment. 
Peter Jolly, who is National Australia Bank's global head of research, sought to defend the economy from the popular offshore view that it is in deep trouble. The mood toward Australia has cooled intensely since China's slowdown dominated headlines and Australian assets are out of favour with global investors, culminating with the Australian dollar at a six-year low.
It is not uncommon for Australian economic insiders to have a more nuanced view of the state of domestic policy. 
In Mr Jolly's view, not only was Australia unlikely to witness further cuts to interest rates, but the non-mining related areas of the economy are performing solidly.
Mr Krugman, a former adviser to collapsed energy company Enron, told Fairfax Mediathe Reserve Bank of Australia (RBA) should keep cutting rates because "there's going to be a hit to the Australian economy, maybe even a recession".
While some local economists do agree that the RBA has more work to do (markets are pricing in a 60 per cent chance of a cut by the end of 2015) and a recession has not been ruled out by the RBA, Mr Jolly came up with seven reasons why the Nobel laureate is wrong.
1. The Chinese economy is slower but it's not collapsing.
2. Commodity prices are lower but Australian producers have in turn lowered their costs and are profitable.
3. The Aussie dollar has fallen a long way. It has also fallen more than commodity prices.
4.  The non-mining economy is improving. The RBA normally hikes rates when business conditions are this strong.
5. The unemployment rate has stabilised and jobs are being created. 
6. The RBA is concerned about house prices.
7. The RBA governor implies the hurdle to cut again is high, and there's a need to consider near and long term factors.
"Yes, stuff happens and the RBA could well cut the cash rate again," Mr Jolly said. "But I expect a fair amount would need to go wrong - not just fail to get better - for the RBA to do so."
He argued there was no economic case to cut rates below 2 per cent by the end of the year, estimating the real probability of lower rates at 20 per cent.