We propose a scheme to generate a displaced macroscopic superposition
of phase squeezed coherent states by incorporating an optical parametr
ic oscillator (OPO) and a nonlinear Kerr medium in a Mach-Zhender inte
rferometer configuration. We show that the phase squeezed coherent sta
te generated by the OPO evolves into a macroscopic superposition of ph
ase squeezed coherent states on spending a specific amount of time ins
ide a Kerr medium. The phase space displacement is achieved by the int
erference of the intense reference beam with the signal in the final b
eam splitter of the interferometer. The noise of the reference beam co
ntaminating the signal is prevented by making this beam splitter highl
y reflective. We have calculated the photon number uncertainty of the
outcoming beam and have shown that it is smaller than the usual amplit
ude squeezed coherent state's value.