The renormalization group (RG) describes how the parameters of a quantum field theory change with the energy scale. The Callan-Symanzik equation governs the scale dependence of Green's functions. Fixed points of the RG flow correspond to scale-invariant theories. The RG explains universality in critical phenomena and determines the domain structure of quantum field theories.
The renormalization group is not a group in the mathematical sense but a set of transformations that relate the description of a theory at one energy scale to its description at another. The core idea, due to Wilson, is that physics at low energies should not depend on the details of physics at very high energies. Integrating out high-energy degrees of freedom produces an effective theory at lower energies with modified (renormalized) parameters. The RG tracks how these parameters change.
The Callan-Symanzik equation formalizes this for Green's functions in QFT. It states that the scale dependence introduced by the renormalization procedure is compensated by the running of the coupling constant (governed by the beta function) and the rescaling of the fields (governed by the anomalous dimension gamma). Physical predictions are therefore independent of the arbitrary renormalization scale mu, even though individual Feynman diagrams depend on mu. This equation resums large logarithms that would otherwise spoil perturbation theory when the external momenta are far from the renormalization scale.
Fixed points of the RG flow are values of the coupling where beta(g*) = 0 -- the coupling stops running. At a fixed point, the theory is scale-invariant (and often conformally invariant). Ultraviolet fixed points control the high-energy behavior; infrared fixed points control the low-energy behavior. QCD is asymptotically free: it flows to the free-field fixed point g* = 0 at high energies (a UV fixed point). QED flows away from g = 0 at high energies (the coupling grows), suggesting it needs UV completion.
The RG also provides the deepest understanding of why effective field theories work. Near any fixed point, operators in the Lagrangian are classified as relevant (coupling grows at low energies, dimension < 4), marginal (coupling approximately constant, dimension = 4), or irrelevant (coupling shrinks at low energies, dimension > 4). At low energies, irrelevant operators are suppressed by powers of the high-energy scale and can be neglected. This is why a theory with only a few parameters (mass, charge, quartic coupling) can describe low-energy physics with extraordinary accuracy, even if the true high-energy theory is far more complicated. The Standard Model itself is understood as the most general effective field theory consistent with its symmetries, containing all relevant and marginal operators.