verbs - Usage of "would have been"


In the movie "A Walk to remember" Jimmie's father says the following to his son-in-law who got into medical school. Actually Jimmie is dead when he says,



We are proud of you, son. Jimmie would have been proud of you, too.



I wonder if the use of "would have been" is correct in this case. Shouldn't it simply be "would be"? I mean why past of would instead of present?




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