Dellepiane-Avellaneda, SebastianSebastianDellepiane-AvellanedaHardiman, NiamhNiamhHardimanLas Heras, JonJonLas Heras2024-08-062024-08-062021 Taylo2021-03-23Review of International Political Economy0969-2290http://hdl.handle.net/10197/26493The housing booms and busts in Ireland and Spain were among the most striking episodes of the Eurozone crisis. While asset price inflation and financialization of housing was gathering pace across the developed world, these two ‘most different’ cases converged on the same outcome as the most extreme forms of construction-based bubbles. The key contributions of this paper are threefold. Firstly, we show how cheap credit can be understood as analogous to a natural resource such as oil: resource abundance generates a ‘paradox of plenty’ whereby an asset becomes a liability. Secondly, we open the black box of political pathways through which this happens, expanding our understanding of how perverse outcomes are produced. Thirdly, we account for why Spain and Ireland were more susceptible to extreme outcomes than other European countries, thereby extending our understanding of asymmetries in the political economy of the Eurozone.enThis is an Accepted Manuscript of an article published by Taylor & Francis in Review of International Political Economy on 23 March 2021, available online: http://www.tandfonline.com/10.1080/09692290.2021.1899960.Financial resource cursePathways from the peripheryHousing bubblesGrowth modelsSpainIrelandEurozone crisisJournal Article2941287131310.1080/09692290.2021.18999602021-03-23https://creativecommons.org/licenses/by-nc-nd/3.0/ie/