String creation and monodromy from fractional D-branes on ALE spaces

We investigate the anomalous creation of fundamental strings using the boundary state formalism of fractional D-branes on ALE spaces in the orbifold limit. The open string Witten index plays a crucial role in this calculation and so the result remains unchanged even if we blow up the orbifold geometrically, matching the anomaly inflow argument. Further we consider the quiver gauge theories on such fractional D3-branes and see that the string creation mechanism determines 1-loop logarithmic monodromy of these gauge theories. Also we comment on the relation of D(-1)-D3 amplitude to the 1-loop beta function. (author)