We begin a study of the cosmology of moduli in string theory. The quan
tum field theory requirement of ''naturality'' is shown to be incompat
ible with slow roll inflationary cosmology unless very stringent const
raints are satisfied. In most cases, these constraints imply the exist
ence of fields with the properties of string moduli: their natural ran
ge of variation must be the Planck scale. The scale which characterize
s their potential energy (the inflation scale) must be two to three or
ders of magnitude smaller than the Planck mass in order to explain the
observed magnitude of the fluctuations in the cosmic microwave backgr
ound. Even if these constraints are satisfied, generic initial conditi
ons near the Planck energy density do not lead to inflation unless the
theory contains topological defects. In this case inflation can arise
naturally at the cores of the defects. We show that string theory has
two generic types of domain walls which could be the seeds for inflat
ion, and argue that modular physics provides a very robust model of in
flation. Two scenarios are presented to explain the discrepancy betwee
n the inflation scale and the scale of supersymmetry breaking. One of
them is favored because it leads to a natural understanding of why the
dilaton does not run out to the weak coupling region in the postinfla
tionary period.