In that scenario we would tend to be deflation-oriented, not least because of statistical distortions in measuring prices. An economy therefore needs a little inflation in order to have a buffer.
The Euro Stoxx 50 displayed heightened volatility as the referendum day approached, but remained range-bound between market tensions earlier this year and in August of last year. Stock prices dropped sharply on the day after the referendum; however, the situation had already calmed down by the afternoon.