No value restriction is needed for algebraic effects and handlers

No value restriction is needed for algebraic effects and handlers, by Ohad Kammar and Matija Pretnar:

We present a straightforward, sound Hindley-Milner polymorphic type system for algebraic effects and handlers in a call-by-value calculus, which allows type variable generalisation of arbitrary computations, not just values. This result is surprising. On the one hand, the soundness of unrestricted call-by-value Hindley-Milner polymorphism is known to fail in the presence of computational effects such as reference cells and continuations. On the other hand, many programming examples can be recast to use effect handlers instead of these effects. Analysing the expressive power of effect handlers with respect to state effects, we claim handlers cannot express reference cells, and show they can simulate dynamically scoped state.

Looks like a nice integration of algebraic effects with simple Hindly-Milner, but which yields some unintuitive conclusions. At least I certainly found the possibility of supporting dynamically scoped state but not reference cells surprising!

It highlights the need for some future work to support true reference cells, namely a polymorphic type and effect system to generate fresh instances.