This paper investigates the extension of real business cycle (RBC) theory to a small open economy, focusing on the Canadian case. The author numerically computes the equilibrium stochastic process of an artificial economy to measure volatility, comovement, and persistence of key macro-aggregates. These measures are then compared with actual Canadian data. The results show that the open-economy model requires smaller and less persistent technological disturbances compared to closed-economy models. The model closely matches the behavior of most variables except private investment, which is highly volatile. The paper provides an interpretation for the volatile behavior of investment in the artificial economy, attributing it to the frictionless nature of capital accumulation. The study highlights the importance of foreign asset accumulation in understanding the dynamics of savings and trade balance fluctuations. The paper concludes by suggesting that frictions in the investment process may play a significant role in open-economy RBC theory and proposes extensions to incorporate these frictions.This paper investigates the extension of real business cycle (RBC) theory to a small open economy, focusing on the Canadian case. The author numerically computes the equilibrium stochastic process of an artificial economy to measure volatility, comovement, and persistence of key macro-aggregates. These measures are then compared with actual Canadian data. The results show that the open-economy model requires smaller and less persistent technological disturbances compared to closed-economy models. The model closely matches the behavior of most variables except private investment, which is highly volatile. The paper provides an interpretation for the volatile behavior of investment in the artificial economy, attributing it to the frictionless nature of capital accumulation. The study highlights the importance of foreign asset accumulation in understanding the dynamics of savings and trade balance fluctuations. The paper concludes by suggesting that frictions in the investment process may play a significant role in open-economy RBC theory and proposes extensions to incorporate these frictions.