Financial resource curse in the Eurozone periphery

The housing booms and busts in Ireland Spain were among the most striking episodes of Eurozone crisis. While asset price inflation financialization was gathering pace across developed world, these two ‘most different’ cases converged on same outcome as extreme forms construction-based bubbles. key contributions this paper are threefold. Firstly, we show how cheap credit can be understood analogous to a natural resource such oil: abundance generates ‘paradox plenty’ whereby an becomes liability. Secondly, open black box political pathways through which happens, expanding our understanding perverse outcomes produced. Thirdly, account for why more susceptible than other European countries, thereby extending asymmetries economy Eurozone.