History of Russia deficit required borrowing, primarily from Amsterdam; five percent of the budget was allocated to debt payments. Paper money was issued to pay for expensive wars, thus causing inflation. For its spending, Russia obtained a large and glorious army, a very large and complex bureaucracy, and a splendid court that rivaled Paris and London. However, the government was living far beyond its means, and 18th-century Russia remained "a poor, backward, overwhelmingly agricultural, and illiterate country." Peter I was succeeded by his second wife, Catherine I (1725–1727), who was merely a figurehead for a powerful group of high officials, then by his
Princess Catherine Ivanovna of Russia from the capital and her mother followed her husband into exile. Catherine and her brother Vsevolod remained in the care of her grandmother, the Grand Duchess Elizaveta Mavriekievna of Russia. On 18 July 1918, their father Prince John was killed, and their mother Princess Jelena was arrested and spent several months in Soviet prisons. Grand Duchess Elizabeth was able to take Catherine and her brother to Sweden. Sometime later, they were reunited with their mother. The family lived in Serbia, then moved to England. There, Catherine received an excellent education, although she never learned the Russian language because her mother,