  A cavity QED system is analyzed which duplicates the dynamics of a two-level
atom in free space interacting exclusively with broadband squeezed light. We
consider atoms in a three or four-level Lambda-configuration coupled to a
high-finesse optical cavity which is driven by a squeezed light field. Raman
transitions are induced between a pair of stable atomic ground states via the
squeezed cavity mode and coherent driving fields. An analysis of the reduced
master equation for the atomic ground states shows that a three-level atomic
system has insufficient parameter flexibility to act as an effective two-level
atom interacting exclusively with a squeezed reservoir. However, the inclusion
of a fourth atomic level, coupled dispersively to one of the two ground states
by an auxiliary laser field, introduces an extra degree of freedom and enables
the desired interaction to be realised. As a means of detecting the reduced
quadrature decay rate of the effective two-level system, we examine the
transmission spectrum of a weak coherent probe field incident upon the cavity.
