Emotion is thought to have two main effects on memory it either improves it or has a damaging effect on it (making it less accurate or causing forgetting). The research falls into 4 main areas.
Mood/State dependant forgetting is the name given to when people tend to remember material better when there is a match between their mood at learning and at retrieval. Ucros (1989) found a moderately strong relationship between mood at the learning and retrieval stage; the effects are also stronger when the participants are in a positive mood rather than a negative mood. She found that mood dependence was more likely if the stimulus material was about real life, rather than artificially constructed material, and that adults were more likely to demonstrate mood dependence than children. These internal cues are a form of context….(short extract)