My inflation is manageable (around 1,5% after the first 20 years), but I find it hard to recruit more troops with around a profit of 10 ducats each annually.
A lot of that will get fixed once your lands core. However, you could use the National Bank to mint, thus increasing your income. If you were anything other than a horde, I'd say, with income that low, take a few years off of war, but of course, you can't do that...