Simon Peyton-Jones wrote:
GHC does some constant folding, but little by way of strength reduction, or 
using shifts instead of multiplication.  It's pretty easy to add more: it's all 
done in a single module.  Look at primOpRules in the module PrelRules.

Patches welcome!  But please also supply test-suite tests that check the 
correctness of the rules.

So... you mean it's source-level transformation rules? (Rather than wired into the compiler itself somewhere.)

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