In this paper examined the broader definition of money (M3) and the general price level relationship in the Philippines. This study focused on the causality between broader money supply (M3) and the GDP deflator in the Philippines. Empirical analysis on money-price relationship has received greater attention, a move to assign the particular intention to the central bank. The most important object of monetary policy is the price stability. This policy hinges on the empirical strength of money and price relationship. The study applied the quarterly data of money supply and GDP deflator from 1984 to 2003. the money supply and the GDP deflator were analyzed empirically. The Granger causality test was used and determined the direction of causality between money and price.