In this article we analyse the role given to education and training by policy-makers in France and Britain from 1980 onwards, in relation to their overall chosen economic (and social) strategies, and highlight conjunctions between education, exchange-rate regimes and the level of economic openness. Britain opted for a monetarist route against inflation, deregulated labour markets, a scaled-down welfare state and reduced taxation, mostly keeping a floating exchange rate. Education became a prominent theme during periods of semi-fixed exchange rates (1987-92) and when the value of the pound soared (from 1997 onwards). The idea that fixed exchange rates may impinge on human capital policies is strengthened by the French case. After a period of Keynesian reflation (1981-83), France opted for European integration and a fixed exchange rate at a high level (politique du franc fort). With rather rigid labour markets and active public policies impeding both labour market deregulation and tax reduction, this led to a high unemployment level, especially among young people. These elements pushed the Government towards using education as a key economic instrument from a human capital perspective, aiming to foster the product quality and innovation necessary to maintain competitiveness in an increasingly integrated common European market. [ABSTRACT FROM AUTHOR]