It's thought to be due to the effect of alcohol on NMDA receptors (which generally reside on the post-synaptic cell in a synaptic connection between two cells and plays a large role in memory formation in the hippocampus.)
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alcohol interferes with key receptors in the brain, which in turn manufacture steroids that inhibit long-term potentiation (LTP), a process that strengthens the connections between neurons and is crucial to learning and memory.
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It gets more complicated, you can read the rest here if you're interested in the details:
http://news.wustl.edu/news/Pages/22479.aspx