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
Catherine I of Russia Mons had had an affair, but there is no evidence for this. Peter died (28 January 1725 Old Style) without naming a successor. Catherine represented the interests of the "new men", commoners who had been brought to positions of great power by Peter based on competence. A change of government was likely to favor the entrenched aristocrats. For that reason during a meeting of a council to decide on a successor, a coup was arranged by Menshikov and others in which the guards regiments with whom Catherine was very popular proclaimed her the ruler of Russia, giving her the title