This study argues that conservative policies of the 1980s adopted by governments in Washington, London, Bonn and Tokyo create further world-wide economic stagnation and financial crises, and it suggests that a combination of conservative and liberal doctrines would provide an economic basis for a civilized society. The authors attempt to identify the philosophical underpinnings which have led us to place an over-reliance on the motivation of self-interest in governing our society. They analyse the role of civic values in modifying economic behaviour thereby providing a rigorous analytical structure around which we can plan civilized national and international public policies. Paul Davidson is author or co-author of "Money and the Real World", "Theories of Aggregate Income Distribution", "International Money and the Real World" and many others.