Propagator theory of brain dynamics is generalized to incorporate a new class of patchy propagators that enable treatment of approximately periodic structures such as are seen in the visual cortex. Complex response fields are also incorporated to allow for features such as orientation preference and wave-number selectivity. The results are applied to the corticothalamic system associated with the primary visual cortex. It is found that this system can generate gamma ( > or = 30 Hz) oscillations during stimulation, whose properties are consistent with experimental findings on gamma frequency and bandwidth, and existence of fine-scale spatial structure. It is found that a potential resonance is associated with each reciprocal lattice vector corresponding to periodic modulations of the propagators. It is found that the lowest resonances are the most likely to give rise to noticeable spectral peaks and increases of correlation amplitude, length, and time, and that these aspects are prominent only if the system is close to marginal stability, in accord with previous measurements and discussions of cortical stability. These features also enable gamma resonances to be stimulus-evoked, with substantial resonance sharpening for relatively small changes in mean neural firing rate. The results also imply dependence of gamma frequency on stimulus features.