Closed string tachyon condensation in spacetime generates potentials on the worldsheet that model two-dimensional inflationary cosmology. These models illustrate and elucidate a variety of aspects of inflation, in particular the generation of quantum fluctuations and their back-reaction on geometry. We exhibit a class of Liouville gravity models coupled to matter that can exhibit, for example: (a) pure de Sitter gravity; (b) slow-roll inflation; (c) topological inflation; and (d) graceful exit into an FRW phase. The models also provide a quantitative testing ground for ideas about the origin of inflation, such as the various `no-boundary/tunnelling' proposals, and the `eternal/chaotic' inflationary scenario. We suggest an alternative mechanism for quantum creation of cosmological spacetimes which, in the context of the model, provides a natural explanation for why the typical FRW cosmology at large scales underwent a period of inflation at small scale.

40 pages, latex, 8 .eps figures; v2: typos and an error in the pair production rate corrected, a few comments added