Empiricism is merely the attempt to falsify theories by subjecting them to a reality check. And only theories that stand up to such a reality check should be used as a basis for economic policy. Ideally, empirical review of theories is part of scientific practice. Sometimes, however, this reality check overtakes science and reveals, in a very real fashion, gaps in theory.
What we are now observing is more favourable than we projected some months ago. That said, we must remain cautious. There is still a lot of uncertainty, as much at the global level as at the level of the euro area, particularly concerning next year’s growth. We cannot yet claim victory.