A model of a local neuron population is considered that contains three subsets of neurons, one main excitatory subset, an auxiliary excitatory subset and an inhibitory subset. They are connected in one positive and one negative feedback loop, each containing linear dynamic and nonlinear static elements. The network also allows for a positive linear feedback loop. The behaviour of this network is studied for sinusoidal and white noise inputs. First steady state conditions are investigated and with this as starting point the linearized network is defined and conditions for stability is discovered. With white noise as input the stable network produces rhythmic activity whose spectral properties are investigated for various input levels. With a mean input of a certain level the network becomes unstable and the characteristics of these limit cycles are investigated in terms of occurence and amplitude. An electronic model has been built to study more closely the waveforms under both stable and unstable conditions. It is shown to produce signals that resemble EEG background activity and certain types of paroxysmal activity, in particular spikes.