Provided are a magnetoresistance effect element with a stable magnetization direction perpendicular to film plane and a controlled magnetoresistance ratio, in which writing can be performed by magnetic domain wall motion, and a magnetic memory including the magnetoresistance effect element. The magnetoresistance ratio is controlled by forming a ferromagnetic layer of the magnetoresistance effect element from a ferromagnetic material including at least one type of 3d transition metal or a Heusler alloy. The magnetization direction is changed from a direction in the film plane to a direction perpendicular to the film plane by controlling the film thickness of the ferromagnetic layer on an atomic layer level.