I am struggling to understand the concept of resummation of large logarithms in QFT; from what I learnt so far the problem relies on the fact that if a full theory defined in the UV contains much different energy scales, perturbation theory becomes useless because loop correction are usually of the form $\sim \log(\mu/\mu')$. Working with EFT should apparently simplify this problem, but I don't understand why.
In particular I don't get why the RG equation can help me to resum (I don't even understand what we mean by resummation, is it a way to get rid of them?) those large logs $\ldots$. Could you please make an example?
For example, in QED one can compute the 1-loop correction to the photon propagator and would find that (after the renormalization) $$\Pi(p^{2})\propto \log(p^{2}/\mu^{2})$$ so we have a large log correction if the scales are much different. As a consequence, one can show that $$\alpha(\mu)=\frac{\alpha_{\text{EM}}}{1-\frac{1}{3\pi}\alpha_{\text{EM}}\log(\mu^{2}/m^{2})}$$ Is this what we mean by resummation? As I understand if the log is large we have no problem our result doesn't get worse. Is it correct to say that?
Also, I do not understand why the EFT should be better at doing that. In my notes I've written that "only with EFT we can exploit the RG equation to promote the 1-loop result at any order in perturbation theory", but it makes no sense to me.