Degenerate four-wave mixing (DFWM) in optical fibres can be used to obtain gain and to generate squeezed states, by utilizing a balanced Mach-Zehnder fibre interferometer (MZFI) with two non-linear arms, which behaves as a degenerate parametric amplifier. In a classical derivation for the optical gain; pump depletion and propagation loss are considered. Maximum achievable gain is calculated in the presence of loss. A numerical study compares the signal gain under different input pump-to-signal field ratios and its limit (undepleted pump), which is the assumption for the derivation of squeezing. Pump depletion and fibre loss hinder the validity of using large non-linear phase shifts to generate squeezed states. A semiclassical derivation provides the correct expression for the degree of squeezing in the absence of loss and pump depletion. Quantum-mechanical solutions provide the same result. The squeezing limitation due to loss is studied by a lumped-parameter model.
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Marhic et al. (1991) studied this question.
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