For any given algebra of local observables in Minkowski space an associated
scaling algebra is constructed on which renormalization group (scaling)
transformations act in a canonical manner. The method can be carried over to
arbitrary spacetime manifolds and provides a framework for the systematic
analysis of the short distance properties of local quantum field theories. It
is shown that every theory has a (possibly non-unique) scaling limit which can
be classified according to its classical or quantum nature. Dilation invariant
theories are stable under the action of the renormalization group. Within this
framework the problem of wedge (Bisognano-Wichmann) duality in the scaling
limit is discussed and some of its physical implications are outlined.Comment: 47 pages, no figures, ams-late
