NEW YORK: Former Federal Reserve Chairman Alan Greenspan has signed a deal to publish his memoirs with The Penguin Press, after a bidding war for a book about his life and vision for the future.

"It is a singular honour for The Penguin Press to publish Alan Greenspan, who has spent his extraordinary career reckoning with how the world really works," Penguin President and Publisher Ann Godoff said in a statement on Tuesday.

"His book will be about what we can know, what we can't know and what we should do about it."

Publishing industry sources said bids had topped US$8 million as Washington lawyer Robert Barnett negotiated with top publishers, including Random House imprint Knopf, Warner Books and HarperCollins.

Such an advance would be one of the biggest in publishing history, though short of the estimated US$12 million Random House reportedly paid former US President Bill Clinton for "My Life," a book also represented by Barnett.

Pope John Paul II, Senator Hillary Clinton and former General Electric Co Chairman Jack Welch also rank among the top recipients of upfront money before any books are sold.

Penguin, a unit of Pearson Plc, said in a statement that it would publish Greenspan's book in 2007, but gave no details on how much he would be paid or whether the cryptic former central banker would use a ghostwriter.

The New York Times, which obtained a copy of Greenspan's 10-page book proposal, said it starts with an anecdote on how he heard of the September 11 attacks while flying from Zurich to Washington.

The newspaper also reported the book discusses his opposition to economic protectionism, his explanation of the "conundrum" of long-term interest rates and his view that China will play a major role in the global economy.

As to whether Greenspan will dish the dirt on any of the world leaders he met, he was vague in his proposal, writing, "I do not intend to dwell on personality aberrations, except as they affect policy decision-making which, of course, always involves personalities."

Greenspan will also suggest that the divide between Republicans and Democrats has become so large that a well-financed independent candidate will emerge in either 2008 or 2012, the Times reported.

Greenspan retired at the end of January after 18 years and a half as Federal Reserve chairman. He became a household name for playing a key role during America's longest economic expansion in the 1990s.

A symbol of integrity while in office, he raised eyebrows on Wall Street for speaking on the economy at private events just a week after leaving the central bank, charging more than US$100,000 per appearance for his musings on the US economy.

While Greenspan made global headlines for his economic views, it remains to be seen whether he can produce a page-turning read after years in a job where he appeared to speak in extraordinarily cryptic financial terms.

Source: China Daily