Korean economy has experienced drastic changes in recent years. Still, economics textbooks used in schools fail to consider all these changes, by focusing only On elementary and fundamental economic theories. Newspapers can be used as one of the most useful textbooks, which can help to solve these problems of our current economic education, as they offer new and diverse economic information on a daily basis. N.I.E. (Newspaper in Education) can be a desirable approach to the effective economic education if it is used properly. N.I.E. was first introduced in Korea in mid 1990s and has been applied to a variety of curriculum including Korean language, science and mathematics, but it has not been widely utilized in teaching economics in high school and there has not been sufficient research On the approach. Against the backdrop, it is necessary to explore the methods to utilize newspapers in teaching economics in high school and analyze the effects that N.I.E. has On economic education as a whole. This study aims to suggest various N.I.E. methods that can be used in high school and to examine the effects that N.I.E.-based economic education has on academic performance and learning attitude of students. First, an extensive review has been done on much research and studies on economic education and N.I.E., and the theoretical background including the concept, objectives and necessity of N.I.E. has been examined. Second, for empirical research, an economics class using newspapers was conducted on the basic macro and micro economics - 'National Economy and Rational Choices'. Students created a text material based on which they will carry out activities, by gathering news and information from papers relating to the class objectives. Third, in order to verify the effects of NIE on economic education, students were evaluated for their academic performance and learning attitude. This paper analyzes the test results, using the t verification of SPSS 10.0 with a 95% confidence level. The findings are as follows. First, the results of the academic erformance test on the relevant economy lectures, the N.I.E.-applied group achieved a higher average on economy-related knowledge, functions, values and attitude, than their counterparts in the group who were taught in a conventional way. The difference in the scores was statistically significant. Second, the learning attitude test has shown similar results. The N.I.E. group gained higher scores than their peers in all areas including general learning attitude, concentration level, learning skills application and voluntary learning. And the difference was statistically significant, too. Therefore, it is suggested that for economic education, schools should encourage teachers to decrease their dependency on textbooks and adopt the N.I.E. teaching method. In order to make it possible, the current education system needs to be changed to allow much research for developing newspaper texts and to facilitate information exchange to develop N.I.E. teaching materials.