International Mathematical Olympiad 1995 Problem 4

Find the maximum value of $x_0$ for which there exists a sequence $x_0, x_1, \ldots, x_{1995}$ of positive reals with $x_0 = x_{1995}$, such that for $i = 1, \ldots, 1995$, $$x_{i-1} + \frac{2}{x_{i-1}} = 2x_i + \frac{1}{x_i}.$$