Combinatorics of the $\hat{sl_2}$ spaces of coinvariants II

The spaces of coinvariants are quotient spaces of integrable $\hat{sl_2}$ modules by subspaces generated by actions of certain subalgebras labeled by a set of points on a complex line. When all the points are distinct, the spaces of coinvariants essentially coincide with the spaces of conformal blocks in the WZW conformal field theory and their dimensions are given by the Verlinde rule. We describe monomial bases for the $\wsl$ spaces of coinvariants, In particular, we prove that the spaces of coinvariants have the same dimensions when all the points coincide. We establish recursive relations satisfied by the monomial bases and the corresponding characters of the spaces of coinvariants. For the proof we use filtrations of the $\hat{\mathfrak{sl}}_2$ modules, and further filtrations on the adjoint graded spaces for the first filtrations. This paper is the continuation of [FKLMM].