The correlation structure of local neuronal networks intrinsically results from recurrent dynamics.

Correlated neuronal activity is a natural consequence of network connectivity and shared inputs to pairs of neurons, but the task-dependent modulation of correlations in relation to behavior also hints at a functional role. Correlations influence the gain of postsynaptic neurons, the amount of information encoded in the population activity and decoded by readout neurons, and synaptic plasticity. Further, it affects the power and spatial reach of extracellular signals like the local-field potential. A theory of correlated neuronal activity accounting for recurrent connectivity as well as fluctuating external sources is currently lacking. In particular, it is unclear how the recently found mechanism of active decorrelation by negative feedback on the population level affects the network response to externally applied correlated stimuli. Here, we present such an extension of the theory of correlations in stochastic binary networks. We show that (1) for homogeneous external input, the structure of correlations is mainly determined by the local recurrent connectivity, (2) homogeneous external inputs provide an additive, unspecific contribution to the correlations, (3) inhibitory feedback effectively decorrelates neuronal activity, even if neurons receive identical external inputs, and (4) identical synaptic input statistics to excitatory and to inhibitory cells increases intrinsically generated fluctuations and pairwise correlations. We further demonstrate how the accuracy of mean-field predictions can be improved by self-consistently including correlations. As a byproduct, we show that the cancellation of correlations between the summed inputs to pairs of neurons does not originate from the fast tracking of external input, but from the suppression of fluctuations on the population level by the local network. This suppression is a necessary constraint, but not sufficient to determine the structure of correlations; specifically, the structure observed at finite network size differs from the prediction based on perfect tracking, even though perfect tracking implies suppression of population fluctuations.