Insomnia has many negative effects on those who suffer from it, both physical and mental. Memory consolidation is also affected by insomnia, because it depends on reaching REM sleep and deep wave sleep, which are both impaired by insomnia.
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Chumachenko, Kseniya, "How Insomnia Reduces Declarative and Non-Declarative Memory Sonsolidation" (2014). A with Honors Projects. 133.