Abstract
The hippocampus is a multi-stage neural circuit that is critical for memory formation. Its distinct anatomy has long inspired theories that rely on local interactions between neurons within each subregion in order to perform serial operations important for memory encoding and storage. These local computations have received less attention in CA1 area, the primary output node of the hippocampus, where excitatory neurons are thought to be only very sparsely interconnected. However, recent findings have demonstrated the power of local circuitry in CA1, with evidence for strong functional interactions among excitatory neurons, regulation by diverse inhibitory microcircuits, and novel plasticity rules that can profoundly reshape the hippocampal ensemble code. Here we review how these properties expand the dynamical repertoire of CA1 beyond the confines of feedforward processing, and what implications they have for hippocampo-cortical functions in memory formation.