Yes, that is the way I did it too, edit: except I did different layers of mulch, green manure, peat...etc. If I can just use hay on the bottom and put my potatoes on top and then cover with more hay, it sure would be easy. It seemed like it took about 3 years for the newspaper to break down completely in my raised beds but it did help keep the weeds out.
My raised beds are nice and fluffy so I sprouted some potatoes and then planted them. If I can talk my husband into letting me use another part of the property I may try the hay-tater way. lol