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Understanding the dynamics of recurrent neural networks is crucial for explaining how the brain processes information. In the neocortex, a range of different plasticity mechanisms are shaping recurrent networks into effective information processing circuits that learn appropriate representations for time-varying sensory stimuli. However, it has been difficult to mimic these abilities in artificial neural models. In the present thesis, we introduce several recurrent network models of threshold units that combine spike timing dependent plasticity with homeostatic plasticity mechanisms like intrinsic plasticity or synaptic normalization. We investigate how these different forms of plasticity shape the dynamics and computational properties of recurrent networks. The networks receive input sequences composed of different symbols and learn the structure embedded in these sequences in an unsupervised manner. Information is encoded in the form of trajectories through a high-dimensional state space reminiscent of recent biological findings on cortical coding. We find that these self-organizing plastic networks are able to represent and "understand" the spatio-temporal patterns in their inputs while maintaining their dynamics in a healthy regime suitable for learning. The emergent properties are not easily predictable on the basis of the individual plasticity mechanisms at work. Our results underscore the importance of studying the interaction of different forms of plasticity on network behavior.