And some of the increased capital outflow was expected, to repay expiring corporate bonds.

ECONOMIST: Brazilian jitters

Europeans are still rushing to put their money into assets abroad: capital outflow has been one cause of the euro's frailty.

ECONOMIST: The euro��s agony, Europe��s opportunity

Mr Lopes insists that tight monetary policy will slow the capital outflow, because it is no longer profitable to borrow reais to buy dollar-denominated Brazilian bonds, as it was when bond yields soared last month.

ECONOMIST: Brazil

But Mr Lardy argues against ending the capital-outflow scare.

ECONOMIST: Money in, money out

If editors at a Murdoch paper are so antientrepreneur, a lighter capital gains tax alone won't staunch Britain's outflow of risk capital and talent.

FORBES: How to import America's entrepreneurial spirit

If editors at a Murdoch paper are so anti-entrepreneur, a lighter capital gains tax alone won't staunch Britain's outflow of risk capital and talent.

FORBES: Matters of spirit

But dollarization helped cushion the crisis by preventing a crippling outflow of capital.

FORBES: AMERICA'S AMAZING MILITARY

Nonetheless the banks have to open and the European Central Bank will have to make up for the outflow of capital.

WSJ: Greek Stocks Slump; Investors Play Catch Up on Cyprus Worries

He said the central bank would impose some limited "capital controls" to prevent an outflow of money when banks reopened.

BBC: Cyprus defends bailout deal amid recession fears

Cyprus became the first eurozone country ever to apply capital controls in an effort to prevent a vast outflow of euros after its banks reopened on Thursday, following a 10-day closure.

CNN: Bank of Cyprus haircut could be as much as 60%

If an American recession caused a flight of capital to safety, these countries would see a sharp outflow of money.

ECONOMIST: When America sneezes | The