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We review the main results obtained recently by our group in the field of quantum noise reduction in nonlinear optical systems. We illustrate the possibility of obtaining significant effects in degenerate parametric oscillators, intracavity second-harmonic generation, nondegenerate four-wave mixing, and one- and two-photon optical bistability.

A block renormalization procedure for a lattice model of the interaction of a system of two-level atoms with the radiation field is introduced; the strong coupling regime is analyzed by examining the one-point and two-point correlation functions.