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.