Provided are a magneto resistive effect element with a stable magnetization direction perpendicular to a film plane and with a controlled magnetoresistance ratio, and a magnetic memory using the magneto resistive effect element. Ferromagnetic layers 106 and 107 of the magneto resistive effect element are formed from a ferromagnetic material containing at least one type of 3d transition metal such that the magnetoresistance ratio is controlled, and the film thickness of the ferromagnetic layers is controlled on an atomic layer level such that the magnetization direction is changed from a direction in the film plane to a direction perpendicular to the film plane.