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 III of Russia it is unknown how Peter died. In December 1796, after succeeding Catherine, Peter's son, Emperor Paul I of Russia, who disliked his mother's behaviour, arranged for Peter's remains to be exhumed and reburied with full honors in the Peter and Paul Cathedral, where other tsars were buried. After his death, four fake Peters (five if Šćepan Mali of Montenegro is included) came forth, supported by revolts among the people, who believed in a rumor that Peter had not died but had been secretly imprisoned by Catherine. The most famous was the Cossack Yemelyan Pugachev, who led what came to be