  A new interpretation of nonrelativistic quantum mechanics is presented. It
explains the violation of Bell's inequality by maintaining realism and the
principle of locality. Schrodinger's cat paradox and the
Einstein-Podolsky-Rosen paradox are solved, too. The new approach assumes the
universal validity of the Schrodinger equation, while von Neumann's postulates
about the measurement process are replaced with a new, consistent set of
postulates. The underlying idea is that quantum states depend on quantum
reference systems in a fundamental way. Quantum reference systems (a new
concept, first introduced in this paper) are themselves physical systems which
contain the system to be described.
