Computational Neuroscience seminars
September 2021
The role of the primate prefrontal cortex in inferring the state of the world and predicting change
Ramon Bartolo· Averbeck lab, Nation Institute of Mental Health
Wed, Sep 8 · 17:35 UTC
In an ever-changing environment, uncertainty is omnipresent. To deal with this, organisms have evolved mechanisms that allow them to take advantage of environmental regularities in order to make decisions robustly and adjust their behavior efficiently, thus maximizing their chances of survival. In this talk, I will present behavioral evidence that animals perform model-based state inference to predict environmental state changes and adjust their behavior rapidly, rather than slowly updating choice values. This model-based inference process can be described using Bayesian change-point models. Furthermore, I will show that neural populations in the prefrontal cortex accurately predict behavioral switches, and that the activity of these populations is associated with Bayesian estimates. In addition, we will see that learning leads to the emergence of a high-dimensional representational subspace that can be reused when the animals re-learn a previously learned set of action-value associations. Altogether, these findings highlight the role of the PFC in representing a belief about the current state of the world.
Interpreting the Mechanisms and Meaning of Sensorimotor Beta Rhythms with the Human Neocortical Neurosolver (HNN) Neural Modeling Software
Stephanie Jones· Brown University
Wed, Sep 8 · 16:00 UTC
Electro- and magneto-encephalography (EEG/MEG) are the leading methods to non-invasively record human neural dynamics with millisecond temporal resolution. However, it can be extremely difficult to infer the underlying cellular and circuit level origins of these macro-scale signals without simultaneous invasive recordings. This limits the translation of E/MEG into novel principles of information processing, or into new treatment modalities for neural pathologies. To address this need, we developed the Human Neocortical Neurosolver (HNN: https://hnn.brown/edu ), a new user-friendly neural modeling tool designed to help researchers and clinicians interpret human imaging data. A unique feature of HNN’s model is that it accounts for the biophysics generating the primary electric currents underlying such data, so simulation results are directly comparable to source localized data. HNN is being constructed with workflows of use to study some of the most commonly measured E/MEG signals including event related potentials, and low frequency brain rhythms. In this talk, I will give an overview of this new tool and describe an application to study the origin and meaning of 15-29Hz beta frequency oscillations, known to be important for sensory and motor function. Our data showed that in primary somatosensory cortex these oscillations emerge as transient high power ‘events’. Functionally relevant differences in averaged power reflected a difference in the number of high-power beta events per trial (“rate”), as opposed to changes in event amplitude or duration. These findings were consistent across detection and attention tasks in human MEG, and in local field potentials from mice performing a detection task. HNN modeling led to a new theory on the circuit origin of such beta events and suggested beta causally impacts perception through layer specific recruitment of cortical inhibition, with support from invasive recordings in animal models and high-resolution MEG in humans. In total, HNN provides an unpresented biophysically principled tool to link mechanism to meaning of human E/MEG signals.
July 2021
Disinhibitory and neuromodulatory regulation of hippocampal synaptic plasticity
Inês Guerreiro· Gutkin lab, Ecole Normale Superieure
Wed, Jul 28 · 17:35 UTC
The CA1 pyramidal neurons are embedded in an intricate local circuitry that contains a variety of interneurons. The roles these interneurons play in the regulation of the excitatory synaptic plasticity remains largely understudied. Recent experiments showed that repeated cholinergic activation of 𝛼7 nACh receptors expressed in oriens-lacunosum-moleculare (OLM𝛼2) interneurons could induce LTP in SC-CA1 synapses. We used a biophysically realistic computational model to examine mechanistically how cholinergic activation of OLMa2 interneurons increases SC to CA1 transmission. Our results suggest that, when properly timed, activation of OLMa2 interneurons cancels the feedforward inhibition onto CA1 pyramidal cells by inhibiting fast-spiking interneurons that synapse on the same dendritic compartment as the SC, i.e., by disinhibiting the pyramidal cell dendritic compartment. Our work further describes the pairing of disinhibition with SC stimulation as a general mechanism for the induction of synaptic plasticity. We found that locally-reduced GABA release (disinhibition) paired with SC stimulation could lead to increased NMDAR activation and intracellular calcium concentration sufficient to upregulate AMPAR permeability and potentiate the excitatory synapse. Our work suggests that inhibitory synapses critically modulate excitatory neurotransmission and induction of plasticity at excitatory synapses. Our work also shows how cholinergic action on OLM interneurons, a mechanism whose disruption is associated with memory impairment, can down-regulate the GABAergic signaling into CA1 pyramidal cells and facilitate potentiation of the SC-CA1 synapse.
Acetylcholine modulation of short-term plasticity is critical to reliable long-term plasticity in hippocampal synapses
Rohan Sharma· Suhita lab, Indian Institute of Science Education and Research Pune
Wed, Jul 28 · 17:00 UTC
CA3-CA1 synapses in the hippocampus are the initial locus of episodic memory. The action of acetylcholine alters cellular excitability, modifies neuronal networks, and triggers secondary signaling that directly affects long-term plasticity (LTP) (the cellular underpinning of memory). It is therefore considered a critical regulator of learning and memory in the brain. Its action via M4 metabotropic receptors in the presynaptic terminal of the CA3 neurons and M1 metabotropic receptors in the postsynaptic spines of CA1 neurons produce rich dynamics across multiple timescales. We developed a model to describe the activation of postsynaptic M1 receptors that leads to IP3 production from membrane PIP2 molecules. The binding of IP3 to IP3 receptors in the endoplasmic reticulum (ER) ultimately causes calcium release. This calcium release from the ER activates potassium channels like the calcium-activated SK channels and alters different aspects of synaptic signaling. In an independent signaling cascade, M1 receptors also directly suppress SK channels and the voltage-activated KCNQ2/3 channels, enhancing post-synaptic excitability. In the CA3 presynaptic terminal, we model the reduction of the voltage sensitivity of voltage-gated calcium channels (VGCCs) and the resulting suppression of neurotransmitter release by the action of the M4 receptors. Our results show that the reduced initial release probability because of acetylcholine alters short-term plasticity (STP) dynamics. We characterize the dichotomy of suppressing neurotransmitter release from CA3 neurons and the enhanced excitability of the postsynaptic CA1 spine. Mechanisms underlying STP operate over a few seconds, while those responsible for LTP last for hours, and both forms of plasticity have been linked with very distinct functions in the brain. We show that the concurrent suppression of neurotransmitter release and increased sensitivity conserves neurotransmitter vesicles and enhances the reliability in plasticity. Our work establishes a relationship between STP and LTP coordinated by neuromodulation with acetylcholine.
A role for dopamine in value-free learning
Luke Coddington· Dudman lab, HHMI Janelia
Wed, Jul 14 · 17:35 UTC
Recent success in training artificial agents and robots derives from a combination of direct learning of behavioral policies and indirect learning via value functions. Policy learning and value learning employ distinct algorithms that depend upon evaluation of errors in performance and reward prediction errors, respectively. In mammals, behavioral learning and the role of mesolimbic dopamine signaling have been extensively evaluated with respect to reward prediction errors; but there has been little consideration of how direct policy learning might inform our understanding. I’ll discuss our recent work on classical conditioning in naïve mice (https://www.biorxiv.org/content/10.1101/2021.05.31.446464v1) that provides multiple lines of evidence that phasic dopamine signaling regulates policy learning from performance errors in addition to its well-known roles in value learning. This work points towards new opportunities for unraveling the mechanisms of basal ganglia control over behavior under both adaptive and maladaptive learning conditions.
Perceptual Inference, Uncertainty and Representation
Maneesh Sahani· UCL, London
Wed, Jul 7 · 15:00 UTC
To act effectively and flexibly in an imperfectly predictable environment with only incomplete and unreliable sensory information, animals must learn to form and compute with internal representations that reflect their necessarily uncertain beliefs about the state of the world. The optimal approach to handling uncertainty is rooted in Bayesian probability, and indeed humans and other animals often approach Bayes optimality with a degree of robustness and flexibility that continues to evade artificial systems. However, the question of how neural circuits organise to achieve this performance remains one of the fundamental mysteries of neuroscience. I will discuss a series of models built around the idea that distributional information is naturally encoded in a distributed fashion by neural population firing rates that converge on the mean values of non-linear functions of state. We will see that such representations emerge naturally in task-optimised systems, and also provide a simple and effective substrate for unsupervised learning. Finally, I will sketch ongoing work that links the emergence of such representations to the architecture of recurrent neural circuits. Presented in the van Vreeswijk Theoretical Neuroscience Seminar series (formerly WWTNS) on 2021-07-07. Recording duration: 00:52:28.
June 2021
An in-silico framework to study the cholinergic modulation of the neocortex
Cristina Colangelo· EPFL, Blue Brain Project
Wed, Jun 30 · 17:35 UTC
Neuromodulators control information processing in cortical microcircuits by regulating the cellular and synaptic physiology of neurons. Computational models and detailed simulations of neocortical microcircuitry offer a unifying framework to analyze the role of neuromodulators on network activity. In the present study, to get a deeper insight in the organization of the cortical neuropil for modeling purposes, we quantify the fiber length per cortical volume and the density of varicosities for catecholaminergic, serotonergic and cholinergic systems using immunocytochemical staining and stereological techniques. The data obtained are integrated into a biologically detailed digital reconstruction of the rodent neocortex (Markram et al, 2015) in order to model the influence of modulatory systems on the activity of the somatosensory cortex neocortical column. Simulations of ascending modulation of network activity in our model predict the effects of increasing levels of neuromodulators on diverse neuron types and synapses and reveal a spectrum of activity states. Low levels of neuromodulation drive microcircuit activity into slow oscillations and network synchrony, whereas high neuromodulator concentrations govern fast oscillations and network asynchrony. The models and simulations thus provide a unifying in silico framework to study the role of neuromodulators in reconfiguring network activity.
Pattern formation in biological neural networks with rebound currents
Stephen Coombes· The University of Nottingham
Wed, Jun 30 · 15:00 UTC
Waves and patterns in the brain are well known to subserve natural computation. Much attention in the theoretical neuroscience community has been devoted to analysing networks of relatively simple spiking neurons (IF type) or firing rate models (Wilson-Cowan type) and to great effect! Indeed, the understanding of how spatio-temporal patterns of neural activity may arise in the cortex has advanced significantly with the development and analysis of such models. To replicate this success for sub-cortical tissues requires an extension to include relevant ionic currents that can further shape firing response. Here I will advocate for two complementary approaches: i) that augments the approach for IF networks to include piecewise linear caricatures of gating dynamics for nonlinear ionic current models, ii) firing rate reductions for systems where the nonlinear ionic currents are slow. By way of illustration, I will show how to construct spatially periodic waves and patterns in i) a simple spiking tissue model of medial enthorinal cortex (with an I_h current), ii) a firing rate model of thalamus (with an I_T current). The biological commonality between these two models is that both express local 'rebound' currents that can usefully shape global tissue response. The mathematical commonality is the use of tools from non-smooth dynamical systems theory to make analytical progress in determining patterns and their stability. Presented in the van Vreeswijk Theoretical Neuroscience Seminar series (formerly WWTNS) on 2021-06-30. Recording duration: 00:40:23.
Ten theorems about threshold-linear networks
Carina Curto· The Pennsylvania State University
Wed, Jun 23 · 15:00 UTC
Threshold-linear networks (TLNs) are popular firing rate models of recurrent networks. They have been used to model associative memory, decision-making, and position coding in cortical and hippocampal networks. Unlike rate models with other choices of nonlinearity, TLNs are piecewise linear, making them more amenable to mathematical analysis. In this talk I will present ten theorems about TLNs from the past five years. Many of these theorems connect the fixed points of a network to the structure of an underlying connectivity graph. These results have enabled us to develop graph rules to predict both static and dynamic attractors from network motifs. The theorems will be complemented with examples that illustrate how the mathematical results can be used to analyze and design recurrent networks that support a rich variety of computations and dynamics. Examples include internally-generated sequences, neural integrators, and central pattern generator circuits. Presented in the van Vreeswijk Theoretical Neuroscience Seminar series (formerly WWTNS) on 2021-06-23. Recording duration: 00:53:51.
A central issue in reinforcement learning (RL) is the ‘curse-of-dimensionality’, arising when the degrees-of-freedom are much larger than the number of training samples. In such circumstances, the learning process becomes too slow to be plausible. In the brain, higher cognitive functions (such as abstraction or metacognition) may be part of the solution by generating low dimensional representations on which RL can operate. In this talk I will discuss a series of studies in which we used functional magnetic resonance imaging (fMRI) and computational modeling to investigate the neuro-computational basis of efficient RL. We found that people can learn remarkably complex task structures non-consciously, but also that - intriguingly - metacognition appears tightly coupled to this learning ability. Furthermore, when people use an explicit (conscious) policy to select relevant information, learning is accelerated by abstractions. At the neural level, prefrontal cortex subregions are differentially involved in separate aspects of learning: dorsolateral prefrontal cortex pairs with metacognitive processes, while ventromedial prefrontal cortex with valuation and abstraction. I will discuss the implications of these findings, in particular new questions on the function of metacognition in adaptive behavior and the link with abstraction.
Structures in space and time - Hierarchical network dynamics in the amygdala
Yael Bitterman· Luethi lab, FMI for Biomedical Research
Wed, Jun 16 · 17:00 UTC
In addition to its role in the learning and expression of conditioned behavior, the amygdala has long been implicated in the regulation of persistent states, such as anxiety and drive. Yet, it is not evident what projections of the neuronal activity capture the functional role of the network across such different timescales, specifically when behavior and neuronal space are complex and high-dimensional. We applied a data-driven dynamical approach for the analysis of calcium imaging data from the basolateral amygdala, collected while mice performed complex, self-paced behaviors, including spatial exploration, free social interaction, and goal directed actions. The seemingly complex network dynamics was effectively described by a hierarchical, modular structure, that corresponded to behavior on multiple timescales. Our results describe the response of the network activity to perturbations along different dimensions and the interplay between slow, state-like representation and the fast processing of specific events and actions schemes. We suggest hierarchical dynamical models offer a unified framework to capture the involvement of the amygdala in transitions between persistent states underlying such different functions as sensory associative learning, action selection and emotional processing. * Work done in collaboration with Jan Gründemann, Sol Fustinana, Alejandro Tsai and Julien Courtin (@theLüthiLab)
Combining two mechanisms to produce neural firing rate homeostasis
Paul Miller· Brandeis University
Fri, Jun 11 · 15:00 UTC
The typical goal of homeostatic mechanisms is to ensure a system operates at or in the vicinity of a stable set point, where a particular measure is relatively constant and stable. Neural firing rate homeostasis is unusual in that a set point of fixed firing rate is at odds with the goal of a neuron to convey information, or produce timed motor responses, which require temporal variations in firing rate. Therefore, for a neuron, a range of firing rates is required for optimal function, which could, for example, be set by a dual system that controls both mean and variance of firing rate. We explore, both via simulations and analysis, how two experimentally measured mechanisms for firing rate homeostasis can cooperate to improve information processing and avoid the pitfall of pulling in different directions when their set points do not appear to match.
Data-driven reduction of dendritic morphologies with preserved dendro-somatic responses
Willem Wybo· Morrison lab, Forschungszentrum Jülich, Germany
Thu, Jun 10 · 16:30 UTC
There is little consensus on the level of spatial complexity at which dendrites operate. On the one hand, emergent evidence indicates that synapses cluster at micrometer spatial scales. On the other hand, most modelling and network studies ignore dendrites altogether. This dichotomy raises an urgent question: what is the smallest relevant spatial scale for understanding dendritic computation? We have developed a method to construct compartmental models at any level of spatial complexity. Through carefully chosen parameter fits, solvable in the least-squares sense, we obtain accurate reduced compartmental models. Thus, we are able to systematically construct passive as well as active dendrite models at varying degrees of spatial complexity. We evaluate which elements of the dendritic computational repertoire are captured by these models. We show that many canonical elements of the dendritic computational repertoire can be reproduced with few compartments. For instance, for a model to behave as a two-layer network, it is sufficient to fit a reduced model at the soma and at locations at the dendritic tips. In the basal dendrites of an L2/3 pyramidal model, we reproduce the backpropagation of somatic action potentials (APs) with a single dendritic compartment at the tip. Further, we obtain the well-known Ca-spike coincidence detection mechanism in L5 Pyramidal cells with as few as eleven compartments, the requirement being that their spacing along the apical trunk supports AP backpropagation. We also investigate whether afferent spatial connectivity motifs admit simplification by ablating targeted branches and grouping affected synapses onto the next proximal dendrite. We find that voltage in the remaining branches is reproduced if temporal conductance fluctuations stay below a limit that depends on the average difference in input resistance between the ablated branches and the next proximal dendrite. Consequently, when the average conductance load on distal synapses is constant, the dendritic tree can be simplified while appropriately decreasing synaptic weights. When the conductance level fluctuates strongly, for instance through a-priori unpredictable fluctuations in NMDA activation, a constant weight rescale factor cannot be found, and the dendrite cannot be simplified. We have created an open source Python toolbox (NEAT - https://neatdend.readthedocs.io/en/latest/) that automatises the simplification process. A NEST implementation of the reduced models, currently under construction, will enable the simulation of few-compartment models in large-scale networks, thus bridging the gap between cellular and network level neuroscience.
(1) We (Grace Lindsay) used convolutional neural nets to model attention, by scaling the input/output function of neurons in an imagenet-trained network according to their selectivity for the feature or object category being attended. While this was effective in improving performance on difficult tasks, it was far less effective in earlier than in later layers. This indicated that neurons selective for a feature in earlier layers did not necessarily drive neurons selective for that feature in later layers. In contrast, applying attention according to the gradient for improving task performance worked well in early as well as late layers. This raises the question whether biological attentional modulation might reflect task requirements and not only the features of the stimuli to be attended. We suggest a simple experiment to answer this question, which we hope to convince an appropriate lab to carry out. (2) In E/I networks, a "paradoxical" response to stimulation has been shown: If the excitatory neurons would be unstable by themselves, but are stabilized by feedback inhibition (an "inhibition-stabilized network", or ISN), then, in response to addition of excitatory input to inhibitory neurons, their steady-state firing rates paradoxically decrease. In circuits with multiple inhibitory cell types, this has been generalized: in an ISN, if there is an added stimulus only to inhibitory cells, there will be a paradoxical change in the net inhibition received by excitatory cells -- e.g., if excitatory firing rates increase, so too will the net inhibition they receive. This does not imply that the firing rates of any particular inhibitory cell type will change paradoxically. Here we (Agostina Palmigiano along with Francesco Fumarola, and experimental work of Dan Mossing in the Adesnik lab) generalize the conditions for a paradoxical firing rate response, including in responses to partial as well as full perturbation of the neurons of a given cell type. We work in the context of the circuit with three inhibitory cell types (PV, SOM, VIP) in mouse V1. We show that, if a given cell type shows a paradoxical response to its own full stimulation, then the circuit without that cell type is unstable. This and experimental results to date, as well as our models fitted to data, suggest that PV but not SOM interneurons stabilize the circuit of layer 2/3 of mouse V1, at least for smaller visual stimulus sizes. For partial perturbations of a fraction f of a cell type that responds paradoxically to a full perturbation, there is a "fractional paradoxical effect": the proportion of all the cells of that type, stimulated and unstimulated, that respond opposite to the stimulation (i.e. negative response to excitation), changes non-monotonically, approaching 1 for f→0, decreasing with increasing f, and then increasing again to again approach 1 as f→1. I'll explain the origins of this behavior.3) We (Mario Dipoppa, in collaboration with the experimental work of Andy Keller and Morgane Roth from the Scanziani lab) have studied the E-PV-SOM-VIP circuit underlying contextual modulation in layer 2/3 of mouse V1. Experiments showed that E, PV, and VIP are suppressed by a surround stimuus that has the same orientation as, but not by one orthogonal to, the center stimulus. SOM neurons show the opposite behavior, being suppressed by an orthogonal but much less by a parallel surround. A combination of theory and optogenetic experiments show that the disinhibitory circuit -- VIP inhibits SOM, which inhibits E -- modulate responses between the two conditions. However, it does so, as part of the recurrent circuit, primarily by changing the recurrent excitation E cells receive, rather than by directly changing the inhibition received, in a manner reminiscent of the paradoxical response. Presented in the van Vreeswijk Theoretical Neuroscience Seminar series (formerly WWTNS) on 2021-06-09. Recording duration: 00:51:59.
Prof. Humphries reads from "The Spike" 📖
Mark Humphries· University of Nottingham
Tue, Jun 8 · 20:00 UTC
We see the last cookie in the box and think, can I take that? We reach a hand out. In the 2.1 seconds that this impulse travels through our brain, billions of neurons communicate with one another, sending blips of voltage through our sensory and motor regions. Neuroscientists call these blips “spikes.” Spikes enable us to do everything: talk, eat, run, see, plan, and decide. In The Spike, Mark Humphries takes readers on the epic journey of a spike through a single, brief reaction. In vivid language, Humphries tells the story of what happens in our brain, what we know about spikes, and what we still have left to understand about them. Drawing on decades of research in neuroscience, Humphries explores how spikes are born, how they are transmitted, and how they lead us to action. He dives into previously unanswered mysteries: Why are most neurons silent? What causes neurons to fire spikes spontaneously, without input from other neurons or the outside world? Why do most spikes fail to reach any destination? Humphries presents a new vision of the brain, one where fundamental computations are carried out by spontaneous spikes that predict what will happen in the world, helping us to perceive, decide, and react quickly enough for our survival. Traversing neuroscience’s expansive terrain, The Spike follows a single electrical response to illuminate how our extraordinary brains work.
How single neuron dynamics influence network activity and behaviour
Fleur Zeldenrust· Donders Institute for Brain, Cognition and Behaviour
Wed, Jun 2 · 17:30 UTC
To understand how the brain can perform complex tasks such as perception, we have to understand how information enters the brain, how it is transformed and how it is transferred. But, how do we measure information transfer in the brain? This presentation will start with a general introduction of what mutual information is and how to measure it in an experimental setup. Next, the talk will focus on how this can be used to develop brain models at different (spatial) levels, from the microscopic single neuron level to the macroscopic network and behavioural level. How can we incorporate the knowledge about single neurons, that already show complex dynamics, into network activity and link this to behaviour?
In the past several years, I have been involved in building a biologically realistic model of the monkey visual cortex. Work on one of the input layers (4Ca) of the primary visual cortex (V1) is now nearly complete, and I would like to share some of what I have learned with the community. After a brief overview of the model and its capabilities, I would like to focus on three sets of results that represent three different aspects of the modeling. They are: (i) emergent E-I dynamics in local circuits; (ii) how visual cortical neurons acquire their ability to detect edges and directions of motion, and (iii) a view across the cortical surface: nonequilibrium steady states (in analogy with statistical mechanics) and beyond.
May 2021
Frontal circuit specialisations for decision making
Laurence Hunt· University of Oxford
Thu, May 27 · 01:00 UTC
During primate evolution, prefrontal cortex (PFC) expanded substantially relative to other cortical areas. The expansion of PFC circuits likely supported the increased cognitive abilities of humans and anthropoids to plan, evaluate, and decide between different courses of action. But what do these circuits compute as a decision is being made, and how can they be related to anatomical specialisations within and across PFC? To address this, we recorded PFC activity during value-based decision making using single unit recording in non-human primates and magnetoencephalography in humans. At a macrocircuit level, we found that value correlates differ substantially across PFC subregions. They are heavily shaped by each subregion’s anatomical connections and by the decision-maker’s current locus of attention. At a microcircuit level, we found that the temporal evolution of value correlates can be predicted using cortical recurrent network models that temporally integrate incoming decision evidence. These models reflect the fact that PFC circuits are highly recurrent in nature and have synaptic properties that support persistent activity across temporally extended cognitive tasks. Our findings build upon recent work describing economic decision making as a process of attention-weighted evidence integration across time.
Mathematical models of neurodegenerative diseases
Alain Goriely· University of Oxford
Tue, May 25 · 11:00 UTC
Neurodegenerative diseases such as Alzheimer’s or Parkinson’s are devastating conditions with poorly understood mechanisms and no cure. Yet, a striking feature of these conditions is the characteristic pattern of invasion throughout the brain, leading to well-codified disease stages associated with various cognitive deficits and pathologies. How can we use mathematical modelling to gain insight into this process and, doing so, gain understanding about how the brain works? In this talk, I will show that by linking new mathematical theories to recent progress in imaging, we can unravel some of the universal features associated with dementia and, more generally, brain functions.
A theory for Hebbian learning in recurrent E-I networks
Samuel Eckmann· Gjorgjieva lab, Max Planck Institute for Brain Research, Frankfurt, Germany
Thu, May 20 · 16:30 UTC
The Stabilized Supralinear Network is a model of recurrently connected excitatory (E) and inhibitory (I) neurons with a supralinear input-output relation. It can explain cortical computations such as response normalization and inhibitory stabilization. However, the network's connectivity is designed by hand, based on experimental measurements. How the recurrent synaptic weights can be learned from the sensory input statistics in a biologically plausible way is unknown. Earlier theoretical work on plasticity focused on single neurons and the balance of excitation and inhibition but did not consider the simultaneous plasticity of recurrent synapses and the formation of receptive fields. Here we present a recurrent E-I network model where all synaptic connections are simultaneously plastic, and E neurons self-stabilize by recruiting co-tuned inhibition. Motivated by experimental results, we employ a local Hebbian plasticity rule with multiplicative normalization for E and I synapses. We develop a theoretical framework that explains how plasticity enables inhibition balanced excitatory receptive fields that match experimental results. We show analytically that sufficiently strong inhibition allows neurons' receptive fields to decorrelate and distribute themselves across the stimulus space. For strong recurrent excitation, the network becomes stabilized by inhibition, which prevents unconstrained self-excitation. In this regime, external inputs integrate sublinearly. As in the Stabilized Supralinear Network, this results in response normalization and winner-takes-all dynamics: when two competing stimuli are presented, the network response is dominated by the stronger stimulus while the weaker stimulus is suppressed. In summary, we present a biologically plausible theoretical framework to model plasticity in fully plastic recurrent E-I networks. While the connectivity is derived from the sensory input statistics, the circuit performs meaningful computations. Our work provides a mathematical framework of plasticity in recurrent networks, which has previously only been studied numerically and can serve as the basis for a new generation of brain-inspired unsupervised machine learning algorithms.