In addition to the above physical effects, those taking prednisone also experience cognitive and emotional challenges. Taking prednisone can induce bipolar episodes, and make folks depressed. It can also mess up short term memory, and spacial navigation, making folks easily disoriented. It apparently does this by affecting a part of the brain called the hippocampus. The hippocampus is found on each side of the brain under the cerebral cortex, behind the medial part of the temporal lobes. It is a limbic center, responsible for the transition of short to long term memory, and spacial positioning. Both chronic stress and long term prednisone use have been shown to degrade the hippocampus in both animals and humans.