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
Anna of Russia husband, but her enemies said she conducted a love affair with Ernst Johann von Biron, a prominent courtier, for many years. In 1730, Tsar Peter II (grandson of Anna's uncle Peter the Great) died childless at a young age. His death rendered extinct the male line of the Romanov dynasty, which had ruled Russia for over a century, since 1613. There were five possible candidates for the throne: the three surviving daughters of Ivan V, namely Catherine (b.1691), Anna herself (b.1693) and Praskovya (b.1694), and the two surviving daughters of Peter the Great, namely Anna (b.1708) and Elizabeth (b.1709). Ivan