Infinite symmetry and Ward identities in two-dimensional string theory

We review some of the recent progress in the continuum formulation of two-dimensional string theory, i.e. two-dimensional quantum gravity coupled to $c=1$ matter. Special attention is devoted to the discrete states and to the $w_\infty$ algebra they generate. To demonstrate the power of the infinite symmetry, we use the $w_\infty$ Ward identities to derive recursion relations among certain classes of correlation functions, which allow to calculate them exactly. (Lectures delivered by I.R. Klebanov at the Workshop "String Quantum Gravity and Physics at the Planck Energy Scale", Erice, June 21-28, 1992, and at the 1992 Trieste Summer School of Theoretical Physics.)