The renormalization group and Weyl invariance

We consider matter fields conformally coupled to a background metric and dilaton and describe in detail a quantization procedure and related renormalization group flow that preserve Weyl invariance. Even though the resulting effective action is Weyl-invariant, the trace anomaly is still present, with all its physical consequences. We discuss first the case of free matter and then extend the result to interacting matter. We also consider the case when the metric and dilaton are dynamical and gravitons enter the loops.