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
Tsarevna Catherine Ivanovna of Russia V's daughters, she seems to have been the most capable. In 1708 the family moved to the new capital, Saint Petersburg. According to contemporaries, Catherine was a short, dark-haired, and pale beauty and was a popular socialite with her charm and sociability. At the request of her uncle Peter I, she was married on 19 April 1716 in Danzig to Karl Leopold, Duke of Mecklenburg-Schwerin. He had initially proposed to Catherine's sister Anna (then Dowager Duchess of Courland) but Peter I instead chose Catherine to be his bride. The marriage created a political alliance between Russia and Mecklenburg against Sweden,