We apply our quantum theory of multiwave mixing for the two-photon two-level model to the generation of squeezed states of light. Because of the two-photon transition, a larger number of interaction potentials are present compared to one-photon models, leading to effects absent in the one-photon case. The two most significant of these are the appearance of dynamic Stark shifts and conjugate scattering off the pump induced two-photon coherence. We show that this can lead to almost perfect squeezing, even for low pump intensities and low detunings from the two-photon resonance.
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Capron et al. (1987) studied this question.
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