We study the impact of correlated neuronal firing rate variability on the a
ccuracy with which an encoded quantity can be extracted from a population o
f neurons. Contrary to widespread belief, correlations in the variabilities
of neuronal firing rates do not, in general, limit the increase in coding
accuracy provided by using large populations of encoding neurons. Furthermo
re, in some cases, but not all, correlations improve the accuracy of a popu
lation code.