When an electric current passes through a wire, it creates a magnetic field around it. When there is a positive change in the current, the magnetic field grows, generating electric current in the opposite direction, resisting changes of current flowing through the wire. When there is a negative change in the current, the magnetic field releases some of the stored energy instead, keeping the current flowing smoothly. 

In a simple wire, this effect is quite weak, but it can be made stronger by winding the wire into a coil. The more windings the coil has, the stronger the magnetic field becomes. If the wire is wound around a magnetic core, such as steel or iron, the magnetic field generated is even stronger. This is simply what a inductor is: a coil of wire around a core of air or magnetic material. It stores energy in magnetic fields, resisting changes in current flowing through it.
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