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ex-ante

The term ex-ante is a phrase meaning "before the event". Ex-ante is used most commonly in the commercial world, where results of a particular action, or series of actions, are forecast in advance. The opposite of ex-ante is ex-post. Examples: ⁕In the financial world, the ex-ante return is the expected return of an investment portfolio. ⁕In the recruitment industry, ex-ante is often used when forecasting resource requirements on large future projects. The ex-ante reasoning in economic topics was introduced mainly by Swedish economist Gunnar Myrdal in his 1927–39 work on monetary theory, who described it in this way: "An important distinction exists between prospective and retrospective methods of calculating economic quantities such as incomes, savings, and investments; and [...] a corresponding distinction of great theoretical importance must be drawn between two alternative methods of defining these quantities. Quantities defined in terms of measurements made at the end of the period in question are referred to as ex post; quantities defined in terms of action planned at the beginning of the period in question are referred to as ex ante."

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