A similar line of reasoning applies to infantile amnesia. The hippocampus is not fully functional in the first two years of life. This suggests that it is not possible for someone to encode episodic memories during this time period. Naturally, this does not imply that these early years are unimportant, or that we have no memory of the first two years of life. It implies only that the memories that we do encode during the very early years will take the form of habits and beliefs (procedural and semantic knowledge) rather than explicit, episodic memories. Infantile knowledge is stored as “bodily memory” and implicit knowledge about how the world works. We therefore have every reason to expect that early experience has a decisive impact on personality development (considering the evidence of “neuronal pruning” and the like).
Mark Solms – The Brain and the Inner World: An Introduction to the Neuroscience of the Subjective Experience p.168