  We revisit a problem of theoretical description of alpha-iron. By performing
LDA+DMFT calculations in the paramagnetic phase we find that Coulomb
interaction and, in particular Hund exchange, yields the formation of local
moments in e_g electron band, which can be traced from imaginary time
dependence of the spin-spin correlation function. This behavior is accompanied
by non-Fermi-liquid behavior of e_g electrons and suggests using local moment
variables in the effective model of iron. By investigating orbital-selective
contributions to the Curie-Weiss law for Hund exchange I=0.9 eV we obtain an
effective value of local moment of e_g electrons 2p=1.04 mu_B. The effective
bosonic model, which allows to describe magnetic properties of iron near the
magnetic phase transition, is proposed.
