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
Peter II of Russia During the reign of Catherine I, young Peter was ignored; but by the time she died in 1727, it had become clear to those in power that the only male-line grandson of Peter the Great could not be kept from his inheritance much longer. The majority of the nation and three-quarters of the nobility were on his side, while his uncle, the Holy Roman Emperor Charles VI (Peter's uncle on his mother's side), persistently urged Peter's claims through the imperial ambassador at Saint Petersburg. Through the efforts of Menshikov, Peter was named Catherine's heir apparent, even though Catherine had two