摘要：Developments in the Nigerian financial markets arising from the advent of new instruments, with Other Depository Corporations in the fore front as participants competing to dominate each other in market share has necessitated the introduction of a new higher order monetary aggregate, M3. This development was to ensure realignment in the definition of monetary aggregates so that stable relationship is maintained between money supply, inflation and output. This study attempts to validate the M3 by subjecting it to F-M dual criteria as well as adopted SVAR to determine its relationship with output and the general price levels. The data spans the period 2009M12 to 2018M6. The results revealed that the M3 satisfies the F-M dual criteria and SVAR report high persistent positive response of the level of economic activities arising from positive shock to M3 and similarly prices showed identical response but of lower magnitude. The study therefore submits that M3, in line with economic theory, contains enormous information about output and inflation in Nigeria than M2, hence we support the adoption of the new higher order monetary aggregate (M3) as the broadest definition of money for Nigeria.
关键词：Monetary Aggregates; Nominal Output; Prices; Structural VAR
