  In the previous paper hep-th/0312199 we studied the 't Hooft-Polyakov (TP)
monopole configuration in the U(2) gauge theory on the fuzzy 2-sphere and
showed that it has a nonzero topological charge in the formalism based on the
Ginsparg-Wilson relation. In this paper, by showing that the TP monopole
configuration is stabler than the U(2) gauge theory without any condensation in
the Yang-Mills-Chern-Simons matrix model, we will present a mechanism for
dynamical generation of a nontrivial index. We further analyze the instability
and decay processes of the U(2) gauge theory and the TP monopole configuration.
