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However, it remains unclear how such supervised learning is implemented in biological neural net-works. Learning in recurrent spiking networks is notoriously difficult because lo-cal changes in connectivity may have an unpredictable effect on the global dynamics. The most commonly used learning rules, such as temporal back-propagation,are not local and thus not biologically plausible. Furthermore, reproducing thePoisson-like statistics of neural responses requires the use of networks with balanced excitation and inhibition. Such balance is easily destroyed during learning.Using a top-down approach, we show how networks of integrate-and-fire neurons can learn arbitrary linear dynamical systems by feeding back their error asa feed-forward input. The network uses two types of recurrent connections: fast and slow. The fast connections learn to balance excitation and inhibition using a voltage-based plasticity rule. The slow connections are trained to minimize the error feedback using a current-based Hebbian learning rule. Importantly, the balance maintained by fast connections is crucial to ensure that global error signals are available locally in each neuron, in turn resulting in a local learning rule for the slow connections. This demonstrates that spiking networks can learn complex dynamics using purely local learning rules, using E/I balance as the key rather than an additional constraint. The resulting network implements a given function within the predictive coding scheme, with minimal dimensions and activity."